Pauly Co Reports a Foreign Currency Translation Gain of $5M in in Its

Pauly Co. reports a foreign currency translation gain of $5M in its statement of shareholders' equity. From this, you can infer:

A) they have foreign operations where the U.S. dollar is the functional currency.
B) they have foreign operations where local currency is the functional currency.
C) they entered into a foreign currency transaction that year.
D) none of the above.