Assuming That Current Currencies Are Currently in Equilibrium and the Exchange

Assuming that current currencies are currently in equilibrium and the exchange rate for the Brazilian Real is R/$ = 1.753 and that the U.S.expects inflation over the next year to be 4% While in Brazil there is an expectation of 7.3%; what must the exchange rate be in one year? (R/$)

A) 1.634
B) 1.881
C) 1.809
D) 1.823