Dimitri, who is single, paid educational expenses of $16,000 in 2021. He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000. Dimitri has other adjusted gross income of $87,200. With respect to the $3,000 of bond interest, Dimitri must include in taxable income

A) $0.

B) $1,400.

C) $1,600.

D) $3,000.