Suppose that U.S.prices rise 4% over the next year while pricesin Mexicorise 6%.

Suppose that U.S.prices rise 4% over the next year while pricesin Mexicorise 6%. According to the purchasing power parity theoryof exchange rates what should happen to the exchange rate betweenthe dollar and the peso?A. The dollar should depreciate.B. The peso should appreciate.C. The peso should depreciate.D. The dollar will be revalued.