Note: There is only one very large area in this level, therefore it's not split into smaller parts.
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This level is full of icy platforms, so be sure to compensate for sliding. Jump onto the platform to your right. Hop on it to stop it from dropping too far. Anticipate when the rope will swing over to you and jump so that you grab it at the end. If you grab it and higher up you won't be able to jump to the next platform. Let the rope swing as far to the right as possible, then jump off onto the platform to your right. Take a running jump off of this platform over the spikes and into the water.
Drop down to the bottom and start swimming up so that you don't hit the spikes. Keep tapping 'A' over and over and over again as you move left along the ceiling of the area. When you reach the surface on the left side, swim up and out of the water. Jump onto the platform to your left. Don't break the surface at the centre of the hole as you may get hit by a water drop which will just push you back under water.
Jump to the platform to your left, making sure that you time your jump so that you don't get hit by a water drop. Repeat this again. Now drop into the water to your left. Drop down and begin swimming just before you hit the spikes at the bottom. Swim right along the top of the area and then swim up out of the water at the end and onto the platform.
Drop into the water and grab the two bells in there if you want, but don't touch the spikes at the bottom. Jump onto the platform floating on the surface of the water and use it to grab the hourglass. Jump onto the platform to the right of it when you're ready to continue.
Jump down the hole onto the platform on the water to your right. Don't bother with entering the water here as there's nothing to collect. Jump from floating platform to floating platform as they come close to each other until you reach the end. When you do jump up and grab the hourglass above the hole then drop down. You'll land on a platform floating up and down.
This part's a pain. Wait until the platform you're on's about halfway up to the top, then jump to the next platform. If it's higher, you'll hit the ceiling and won't make it to the platform. If it's lower, you won't be able to jump far enough. I wouldn't worry to much about the collectibles in this area. There are bells above each platform, but there are spikes above these, so be cautious if you jump up to grab these. You may find it easier to just swim through the water here, but don't forget that the parts with water pouring from above will push you down, so you need to press 'A' quicker there. When you've made it to the right side of the level, jump onto the final platform and ring the bell to finish it.