During the period of 2 hours, the yeast ate the sugar, and generated Carbon-Dioxide gas and alcohol. Â This is the process that causes bread-dough to rise, and eventually produces stuff that can be distilled to concentrate the alcohol and make wine or whiskey.
-- If Daniel tied the neck of the balloon, so that nothing could get in r out during the 2 hours, then the mass of the balloon and everything inside it didn't change. Â The balloon may have inflated slightly ... due to the creation of gas inside that wasn't there before ... just like bread dough. Â But no mass was created or destroyed inside or outside of the balloon, and none got in or out.
-- If Daniel left the neck of the balloon open, then the mass of the balloon and its contents decreased slightly during the 2 hours. Â The yeast took carbon and oxygen from the sugar, and used them to make Carbon Dioxide gas. Â Then the gas flew out through the neck of the balloon to Freedom.