Gina Loans George $1,000

Gina loans George $1,000. George agrees to pay her $1,100 next year. They both expect an inflation rate of 4 percent. At the end of the year, the inflation rate turns out to be 5 percent. This unexpected change is

A) good for George but bad for Gina.
B) good for both George and Gina.
C) bad for both Gina and George.
D) good for Gina but bad for George.
E) irrelevant, a deal is a deal.