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How is the nominal rate of return on an investment different from the real rate of return on an investment? Question 6 options: 1 )

How is the nominal rate of return on an investment different from the real rate of return on an investment?
Question 6 options:
1)
Trick question..the nominal and the real rate of return are the same thing!
2)
The nominal (quoted) rate of return is the rate of return without adjusting for inflation; whereas the real rate of return is the inflation adjusted rate of return.
3)
The real rate of return is the rate of return without adjusting for inflation; whereas the nominal rate of return is the inflation adjusted rate of return.

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