Given the following information, what is the (approximate) rate of change in the exchange rate (e) between (GBP) and (JPY) according to the Purchasing Power Parity?

Real interest rate in UK and Japan: 2%

Inflation in UK: 4%

Nominal interest rate in Japan: 3%

Spot rate: 200/

Which of the following is correct:

No change since the real interest rates are same.

GBP depreciates by 3.08%.

GBP appreciates by 3.0196%.

JPY appreciates by 3.0196%.

JPY appreciates by 3.08%.