A bag composed of a semi-permeable membrane containing 1% salt water is placed into a cup with 10% salt water (a higher concentration of salt). Through osmosis, water will move (out of/into) the bad and the bad will (expand/shrink).

Out of, shrink

Explanation:

Water would move outside the cell due to osmosis. Osmosis is the movement of a solvent, water, in this case through a membrane from a region of high concetration to a region with less concentration.

The water molecules would move through the semi-pearmeable membrane from the region of high concentration (the bag) to a region with less concentration (the cup), thus, equalizing the water concentration inside and outside the bag. Since there is a higher concentration of salt outside, water will move out of the bag to equalize the concentration.

The result of this water movement would be an incurred bag or cell, hence, the cell would shrink.