Assume UKand Swiss Investors Require a Real Rate of Return

Assume UKand Swiss investors require a real rate of return of 3%. Assume the nominal UK interest rate is 6% and the nominal Swiss rate is 4%. According to the international Fisher effect, the franc will ____ by about ____.

A) appreciate; 3%
B) appreciate; 1%
C) depreciate; 3%
D) depreciate; 2%
E) appreciate; 2%