Assume that a 2-year Treasury note has no maturity premium and that the real (pure) rate of interest is 3 percent. If the T-note carries a yield to maturity of 5 percent and the expected average inflation rate over the next year is 1 percent, what is the implied expected inflation rate for the second year?

A. 1%

B. 2%

C. 3%

D. 4%