​Assume That the One-Year Interest Rate in the United States

​Assume that the one-year interest rate in the United States is 7 percent and in the United Kingdom is 5 percent. According to the international Fisher effect, the British pound's spot exchange rate should ____ by about ____ over the year.

A) ​depreciate; 1.9 percent
B) ​appreciate; 1.9 percent
C) ​depreciate; 3.94 percent
D) ​appreciate; 3.94 percent