One Reason for the Failure of Purchasing Power Parity Theory

One reason for the failure of purchasing power parity theory and international Fisher effect in predicting short-term movements in exchange rates is due to the

A) impact of investor psychology on short-run exchange rate movements.
B) strong relationship between inflation rates and interest rates.
C) impact of interest rates and short-term exchange rate movements.
D) strong relationship between interest rate differentials and subsequent changes in spot exchange rates.
E) government intervention in cross-border trade that violates the assumption of efficient markets.