The 1 Year Interest Rate in the U

The 1 year interest rate in the U.S.is 2%.The spot exchange rate for Canadian dollars .97 to the U.S.dollar.The 6 months forward rate is .9698 to the U.S.dollar.These prices indicate that interest rates in Canada,on an annualized basis,are about:

A) .08% lower.
B) .08% higher.
C) .04% higher.
D) .8% lower.