If you want a higher resolution (0.1C) from that LM35 sensor, then add this line to void setup()
analogReference(INTERNAL); // use internal 1.1volt Aref
and replace the two temperature lines in void loop() with this line
temperature = ((analogRead(lm35_pin) * 0.1039)); // calibrate by changing the last digit(s) of "0.1039"
Then you can print the temperature with one decimal place.
lcd.print(temperature, 1);
Assuming you have declared temperature as a float.
Leo..