Assume a two-country world: Country A and Country B. Which of the following is correct about relative purchasing power parity (PPP) as related to these two countries? explain ?

If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will weaken in real terms.

If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will weaken in nominal terms.

If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will strenghten in real terms.

If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will strenghten in nominal terms.