Between two nations, which of the following statement(s) is(are) true about the theory of relative purchasing power parity?

i. inflation rates are unrelated

ii. exchange rate differential reflects the inflation rate differential

iii. the inflation rate is larger in weaker currencies

iv. the interest rate is greater than the inflation rate during depreciations

Choose the option that contains all the correct statements.

Select one:

a.

iii, iv

b.

ii, iv

c.

ii, iii

d.

i, ii

e.

i, iii