The Interest Rate Is 4% in the U

The interest rate is 4% in the U.K. and 3% in the U.S. for 90 days. The current spot rate is $2.00/£ and the forward rate is $1.96/£. If a U.S. based investor expects the spot rate to remain at $2.00/£ in 90 days, the expected uncovered interest rate differential would have to be _____ in favor of the _____ investment.

A) 2%; dollar
B) 2%; pound
C) 1%; dollar
D) 1%; pound