According to the international fisher effect, if investor purchases a 5 year U.s. bond that has an annual interest rate of 5% rather than a comparable British bond that has an annual interest rate of 6% then the investor must be expecting the _______ to _______ at a rate of at least 1% per year over 5 years.

a. british pound; appreciate

b. British pound; revalue

c. u.s.dollar; appreciate

d. us dollar; depreciate

*Please show me how you get the answer, not just the answer**