The right answer is the concentration would increase.
All living cells in the body act as semi-permeable membrane in relation to the aqueous medium in which they are. As seen above, osmosis is a phenomenon that consists of a liquid exchange of a hypotonic solution to a hypertonic solution through a semipermeable membrane.
A cell placed in distilled water undergoes enormous osmotic pressure. In the absence of backpressure applied in the cytoplasm, distilled (hypotonic) water diffuses into the cell (hypertonic) through the membrane. The massive entry of water into the red blood cell causes the swelling, then the bursting of it. This is called "Endosmosis". On the other hand, if we put cells in a hypertonic solution, they will retract. Such an external environment causes the release of water from red blood cells and therefore the phenomenon of "Exosmosis".