If U.S.inflation is 2%,Japanese inflation is 1%,and Mexican inflation is 3%,which of the following is TRUE according to the theory of purchasing power parity?

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According to the theory of purchasing power parity, if a country's inflation rate is higher, its currency should depreciate against a country with a lower inflation rate. Since U.S. inflation is 2%, Japanese inflation is 1%, and Mexican inflation is 3%, the dollar should rise by 1% versus the yen (because U.S. inflation is higher than Japanese but by 1% less) and fall by 1% versus the peso (because Mexican inflation is higher than U.S. inflation by 1%).

If USInflation Is 2%,Japanese Inflation Is 1%,and Mexican Inflation Is 3%,which