Which of the Following Statements Correctly Apply to TIPS

Which of the following statements correctly apply to TIPS?
I.They are quoted as a percentage of the current accrued principal.
II.They pay a variable interest rate that responds to movements in the inflation rate.
III.They are backed by the full faith and credit of the U.S.government.
IV.They adjust for inflation on an annual basis.

A) I and III only
B) II and IV only
C) III and IV only
D) I, II, and III only
E) II, III, and IV only