Assume that the three-year annualized interest rate in the United States is 7 percent and the three-year annualized interest rate in United Kingdom is 5 percent. Assume interest rate parity holds for a three-year horizon. Assume that the spot rate of the British pound is $1.37. If the forward rate is used to forecast exchange rates, what will be the forecast for the British pounds spot rate in three years? What percentage appreciation or depreciation does this forecast imply over the three-year period?