Currently, You Can Exchange €100 for $112

Currently, you can exchange €100 for $112.55.The inflation rate in Europe is expected to be 1.4 percent.In one year, it is expected that €100 can be exchanged for $113.50.Assume relative purchasing power parity exists.What is the expected inflation rate in the U.S.?

A) 2.69 percent
B) 2.98percent
C) 2.24 percent
D) 3.65 percent
E) 3.98 percent