Find Potential energy of the magnet before the fall E=mgh=0.1*9.8*1=0.98 joules. All of this should be converted to kinetic energy so initially u have 0.98 joules of kinetic energy and some of this will be converted to electrical energy which is then converted into light, heat etc. so final kinetic energy is ek=1/2mv^2=0.722 joules. The difference between the 0.98 and 0.722 is the electrical energy so 0.26 is the answer