Genetic drift is a mechanism of evolution characterized by random fluctuations in allele frequencies from one generation to the next. The magnitude of this random drift is inversely proportional to population size; it is stronger in smaller populations.
In this scenario:
Due to its smaller size, population M will experience stronger genetic drift than population N. Stronger drift causes allele frequencies ($p$ and $q$) to deviate more significantly and randomly from their initial values over time.
Heterozygosity is quantified as $2pq$. This value is maximized when $p = q = 0.5$ (yielding $2 \times 0.5 \times 0.5 = 0.5$) and decreases as allele frequencies become unequal (i.e., move away from 0.5 towards 0 or 1).
Since genetic drift is stronger in population M, its allele frequencies ($p$ and $q$) are expected to diverge more from 0.5 compared to population N after 100 generations. Consequently, the heterozygosity ($2pq$) in population M is expected to decrease more substantially than in population N.
Therefore, $2pq$ in population M is expected to be lower than $2pq$ in population N.
All else being equal, among isolated populations comprising of 10, 100, 500 and 1000 individuals, the impact of random genetic drift is LOWEST in the population with _____________ individuals.