Slovakia Experienced Rapid Productivity Growth and an Undervalued Exchange Rate

Slovakia experienced rapid productivity growth and an undervalued exchange rate during 1992-2004, which presented a dilemma because:

A) its performance put it below the standards for European Union membership.
B) its government did not understand how to inflate Slovakia's own currency.
C) real GDP growth suffered as predicted by Balassa-Samuelson.
D) to keep its nominal exchange rate from appreciating against the euro (required for Eurozone membership) , Slovakia would have had to experience higher inflation as per the Balassa-Samuelson effect.