Argentine Tears. The Argentine peso was fixed through a currency board at Pst.00/' throughout the 1990 s. In January 2002 the Argentine peso was floated. On January 29 , 2003 i was trading at Ps3. 16/s. During that one yoar period Argentina's inflation rate was 19% on an annualized basis, Inflation in the United States during that same period was 2.2% annualized. a. What should have been the exchange rate in January 2003 if PpP held? b. By what percentago was the Argentine peso undervalued on an annualized basis? c. What were the probable causes of undervaluation? a. What should have been the exchange rote in January 2003 it ppp held? b. By what percentage was the Aggentine peso undervalued on an annualized basis? On an annualized basis, the Argentine peso was undervalued by 13. (Round to theee decimal places and incluch a negative sign if needed.)