Assume Purchasing Power Parity holds. McDonald's Big Mac price is USD 3.68 in New York and GBP 2.63 in London. The actual spot rate is GBP 0.764 =USD1. Comparing the actual exchange rate to the PPP implied exchange rate, how much is the GBP under/over-valuation?

A.Implied PPP rate shows the actual rate of GBP is 6.90% under-valued

B.Implied PPP rate shows the actual rate of GBP is 6.45% over-valued

C.Implied PPP rate shows the actual rate of GBP is 6.90% over-valued

D.Implied PPP rate shows the actual rate of GBP is 6.45% under-valued