Which of the Following Statements Is Most Correct

Which of the following statements is most correct?

A) The Fisher equation demonstrates that the ratio of prices on identical products in two countries determines the exchange rate between two currencies.
B) Most theorists agree that the Fisher effect is valid and that liquidity premia, and not inflation, drive interest rate determination.
C) If the forward currency premium or discount is equal in sign and magnitude to the interest rate differential, the spot and forward rates are said to be "at interest rate parity."
D) According to the unbiased predictor condition, the forward rate is the best estimate of the future spot rate, which is equally likely to be higher or lower than the forward rate.
E) For the parity conditions to hold, it is imperative that the real risk-free rate (r*) be determined by the market and be allowed to fluctuate freely.