Taylor Sold a Capital Asset on the Installment Basis and Did

Taylor sold a capital asset on the installment basis and did not charge interest on the deferred payment due in three years.

A) Interest will be imputed, thus reducing the capital gain.
B) Interest will be imputed, thus increasing the capital gain.
C) Interest will not be imputed because the contract is for less than five years.
D) Interest will be imputed, thus reducing the seller's total income from the transactions.
E) None of the above.