Serena Was Selling Her House and She Entered into a Contract

Serena was selling her house and she entered into a contract with Jatinder under which he would act as her agent. Armin was interested in buying the house which had a vacant lot next door. Jatinder told Armin that the lot was too small to build on. Armin relied on this representation and bought the house for $200 000. Later the owner of the lot did build a house on it. Jatinder knew that the lot was big enough for a house but had lied to Armin to get him to buy Serena's house. Serena knew nothing about what Jatinder had told Armin. The true value of the house was $175 000. Which of the following are TRUE?

A) Serena is not responsible for Jatinder's fraud because she did not authorize Jatinder to lie to Armin.
B) Serena is responsible to Armin for the difference between what Armin paid and the true value of the house because she benefited from Jatinder's fraud.
C) Serena is not responsible for Jatinder's fraud because she knew nothing about it.
D) Serena is responsible to Armin for the difference between what Armin paid and the true value of the house because Jatinder was acting within the scope of his apparent authority.
E) None of the above