Ron Sold Land (A Capital Asset)to an Unrelated Party for $50,000

Ron sold land (a capital asset) to an unrelated party for $50,000 cash and a 4% note for $150,000 due in three years.His basis in the land was $40,000.Ron and the purchaser are cash basis taxpayers.Which of the following statements is correct?

A) If the Federal rate is 5%,interest will be imputed at that rate.
B) If the Federal rate is 7%,interest will be imputed at that rate.
C) If the Federal rate is 3%,interest will not be imputed.
D) All of the above.
E) None of the above.