Step 1: Start from the free energy:
For any reaction, $\Delta G = \Delta G^{\circ} + RT\ln Q$. Also $\Delta G = -nFE$ and $\Delta G^{\circ} = -nFE^{\circ}$. We use these three links to build the cell equation.
Step 2: Convert to emf:
Substitute the two emf forms: $-nFE = -nFE^{\circ} + RT\ln Q$. Divide every term by $-nF$. This gives $E = E^{\circ} - \dfrac{RT}{nF}\ln Q$.
Step 3: Count the electrons:
The half reactions are $Ni \to Ni^{2+} + 2e^{-}$ and $2Ag^{+} + 2e^{-} \to 2Ag$. The electrons cancel only when the silver half reaction is doubled, so $n = 2$.
Step 4: Write Q:
Solids are left out of $Q$. The product is $Ni^{2+}$ and the reactant is $Ag^{+}$ with coefficient 2. So $Q = [Ni^{2+}]/[Ag^{+}]^{2}$.
Step 5: Compare with the four choices:
Only option 1 has both $2F$ in the denominator and $[Ag^{+}]^{2}$ inside the log, with a minus sign. Options 2 and 3 miss the square. Options 3 and 4 use $F$ instead of $2F$. Option 4 also has a wrong plus sign.
Final Answer:
Using the Nernst equation with $n = 2$ and the squared silver ion term, option 1 is correct.\[ \boxed{E_{cell} = E^{\circ}_{cell} - \dfrac{RT}{2F}\ln\dfrac{[Ni^{2+}]}{[Ag^{+}]^{2}}} \]