According to the International Fisher Effect, If U

According to the international Fisher effect, if U.S. investors expect a 5% rate of domestic inflation over one year, and a 2% rate of inflation in European countries that use the euro, and require a 3% real return on investments over one year, the nominal interest rate on one-year U.S. Treasury securities would be:

A) 2%.
B) 3%.
C) -2%.
D) 5%.
E) 8%.