Step 1: Identify anode and cathode from the cell notation.
The given cell is
\[
M(s)\mid M^{3+}(aq,0.01M)\parallel N^{2+}(aq,0.1M)\mid N(s)
\]
In cell notation, the left electrode acts as anode and the right electrode acts as cathode.
Thus,
\[
M(s)\rightarrow M^{3+}+3e^-
\]
and
\[
N^{2+}+2e^-\rightarrow N(s)
\]
Step 2: Calculate standard cell potential.
\[
E^\circ_{\text{cell}}
=
E^\circ_{\text{cathode}}-E^\circ_{\text{anode}}
\]
Here,
\[
E^\circ_{\text{cathode}}=E^\circ_{M^{3+}/M}=0.6\ V
\]
and
\[
E^\circ_{\text{anode}}=E^\circ_{N^{2+}/N}=0.1\ V
\]
Therefore,
\[
E^\circ_{\text{cell}}=0.6-0.1
\]
\[
E^\circ_{\text{cell}}=0.5\ V
\]
Step 3: Balance the electron transfer.
For oxidation:
\[
M\rightarrow M^{3+}+3e^-
\]
For reduction:
\[
N^{2+}+2e^-\rightarrow N
\]
The least common multiple of electrons is
\[
6
\]
Thus,
\[
n=6
\]
Overall reaction is
\[
2M+3N^{2+}\rightarrow 2M^{3+}+3N
\]
Step 4: Write the reaction quotient.
\[
Q=\frac{[M^{3+}]^2}{[N^{2+}]^3}
\]
Substituting values,
\[
Q=\frac{(0.01)^2}{(0.1)^3}
\]
\[
Q=\frac{10^{-4}}{10^{-3}}
\]
\[
Q=10^{-1}
\]
Step 5: Apply Nernst equation.
At \(298K\),
\[
E_{\text{cell}}
=
E^\circ_{\text{cell}}
-
\frac{0.0591}{n}\log Q
\]
\[
E_{\text{cell}}
=
0.5
-
\frac{0.0591}{6}\log(10^{-1})
\]
Since,
\[
\log(10^{-1})=-1
\]
\[
E_{\text{cell}}
=
0.5
+
\frac{0.0591}{6}
\]
\[
E_{\text{cell}}
=
0.5+0.00985
\]
\[
E_{\text{cell}}
\approx0.51\ V
\]
Step 6: Final conclusion.
Therefore, the cell potential is approximately
\[
\boxed{0.51\ V}
\]
Hence, option (1) is correct.