Question

water occupies space explain with an example

Answer 1

If you fill a balloon with water you will notice that the balloon starts inflating this is because water occupies space

Answer 2

Yes water occupies space because you need to understand that water is liquid and so it will be considered a state of matter and we know that matter generally has mass and occupies space.

Water need extra space to leave it for the other things so you can say that it occupy space.