Step 1: Concept Use the Nernst equation: $E_{cell} = E^\circ_{cell} - \frac{0.0592}{n} \log Q$.
Step 2: Meaning For the reaction $\text{Zn} + 2\text{Ag}^+ \rightarrow \text{Zn}^{2+} + 2\text{Ag}$, $n=2$ and $Q = \frac{[\text{Zn}^{2+}]}{[\text{Ag}^+]^2}$.
Step 3: Analysis Initially, $\log Q = \log(\frac{1}{1^2}) = 0$.
Finally, $\log Q' = \log(\frac{0.1}{1^2}) = -1$.
Change in emf = $-\frac{0.0592}{2} (-1) = +0.0296\text{ V}$.
Step 4: Conclusion The emf increases by $0.0296\text{ V}$.
Final Answer: (C)