Assume that the interest parity condition holds. Also assume that the one-year U.S. interest rate is 4% while the one-year U.K. interest rate is 6%. Given this information, financial markets expect the U.K. pound to:

A) depreciate by 2% today.

B) depreciate by 2% over the next year.

C) appreciate by 2% over the next year.

D) appreciate by 2% today.

E) be unchanged