I do a lab with a water balloon slingshot with my students... I'm sorry, but there's no realistic way you're going to measure the vertical displacement with a meter stick... There's nothing nearby for reference; the water balloon goes well above the height of the school and any other vertical reference point. It's not much different than suggesting to someone that they can measure the vertical height a model rocket reaches by using a meter stick. (well, a rocket usually goes much higher, but regardless, you're well out of the range where using a meter stick would be a reasonable suggestion.)
Manifest, I was going to suggest to you that you could stand at a distance from the waterballoon slingshot, then aim the meter stick toward the highest point the balloon reaches. Constructing a smaller triangle from where the meter stick is pointing, you could use similar triangles to calculate the maximum height of the waterballoon. However, now that you're allowed to use a protractor, right triangle trig simplifies the work you're going to have to do (slightly).
btw, I appreciate this thread... after calculating an initial velocity, my students then have to calculate a horizontal range after pulling an angle out of a hat. (I stand at their calculate point, getting soaked if all goes well.) Students are notoriously horrible at getting accurate times with a stopwatch.
You'll definitely want to use the formula that cyrusabdollahi led you to. However, I agree with your skepticism toward getting credit for suggesting that you measure the vertical displacement with a meter stick.