Assume that relative to today, Dollar is expected to depreciate against the Euro by 5% in real terms over the next period. Assume further that the expected rates of inflation (over the next period) is 10% and 5% in Australia and Europe, respectively. If the real interest rate in Europe r = 5%, choose the correct option:

A. r$ = 0%

B. The above information is not enough to calculate r$

C. r$ = 5%

D. r$ = 10%

E. r$ = 20%