A US Company Has a Subsidiary in Mexico

A U.S. company has a subsidiary in Mexico. If the company's statement of comprehensive income reports a gain for conversion of subsidiary accounts to U.S. dollars in other comprehensive income, the most likely explanation is that:

A) The peso has strengthened against the U.S. dollar and the subsidiary's functional currency is the peso.
B) The peso has weakened against the U.S. dollar and the subsidiary's functional currency is the U.S. dollar.
C) The peso has strengthened against the U.S. dollar and the subsidiary's functional currency is the U.S. dollar.
D) The peso has weakened against the U.S. dollar and the subsidiary's functional currency is the peso.