You Observe That the Inflation Rate in the United States

You observe that the inflation rate in the United States is .78 percent per year and that T-bills currently yield 2.94 percent annually. Using the approximate international Fisher effect, what do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 3.53 percent per year?

A) 4.22 percent
B) 1.37 percent
C) 2.24 percent
D) 1.87 percent
E) .88 percent