Bill Wants to Borrow $100 from John

Bill wants to borrow $100 from John. John wants to make 6% real return on his money, so they both agree on a 6% interest rate paid next year. Neither anticipate the actual - 2% inflation rate next year. In this case:

A) Bill will pay 6% in nominal interest rate.
B) Bill will pay 8% in real interest rate.
C) John is better off.
D) all of the above