Step 1: Write the expression
$E=E^{\circ}-0.0296\log Q$, where $Q=\frac{[\text{Zn}^{2+}]}{[\text{Ag}^{+}]^2}$.
Step 2: Required drop
A drop of 0.0592 V means $0.0296\log Q=0.0592$, so $\log Q=2$.
Step 3: Match
With $[\text{Zn}^{2+}]=1\text{ M}$, we need $[\text{Ag}^{+}]^2=0.01$, so $[\text{Ag}^{+}]=0.1\text{ M}$, the first option.
Final Answer:
The correct concentrations are 1 M $\text{Zn}^{2+}$ and 0.1 M $\text{Ag}^{+}$.
\[ \boxed{\text{(A) }[\text{Zn}^{2+}]=1\text{ M and }[\text{Ag}^{+}]=0.1\text{ M}} \]