The correct answer is that it
decreases in the first case and stays the same
in the second.
The first case is explained below. In
the second case the mass of the water displaced is exactly equal to the mass of the canoe, rock, paddler, and rope. The rock causes the same mass of water to be displaced whether it is sitting in the canoe or submerged in the water, assuming that the rock did not cause the canoe to sink in either case
and the rock is not supported by the bottom. It doesn't matter if you displace a canoe-shaped volume or a canoe and rock- shaped volume. In both cases, volume = mass/density. Even if the rock were pumice and could float (assuming it wasn't forced under), this would be true. Even if the canoe sunk, the level wouldn't change
Edit: Regarding the rock pulling down the canoe hull less due to the buoyant force when it's submerged: yes, it is true that the canoe hull will displace less water due to the buoyant force on the rock reducing its weight. The amount of reduction in the canoe's water displacement will be exactly equal to the "new" volume displaced by the submerged rock.
EDIT: I was wrong about situation 1

; changes to my original message are shown in italics. I agree with most others that the water level will decrease slightly, unless the density of the rock is equal to the density of the water. The short explanation is that when the weight of the rock is supported by the canoe, the canoe has to displace a volume of water around 2-3 times greater than the rock itself to stay afloat, assuming the rock is 2-3 times denser than water. Another way to think about this is that when the rock is resting on the bottom, the bottom of the pool is supporting a part of the rock's weight that was originally supported by the canoe. In the unusual situation that the rock density is equal to or less than (i.e. "floaty") wtar, the volume would be the same. Thank you, xozzx, for helping me see my error on this part

The second part is correct as explained above.