I know the answer but I need a clear explenation please

Also what is the uncovered rate of return from the Euro zone?

Please use the data below, to answer the following question. Interest rate in US (Rh): 3.5% Interest rate in Euro Zone (Rh): 7.5% The current spot rate for EUR (So): $1.25 The expected spot rate for EUR 1 year later (S1): $1.20 What is the uncovered rate of return from the US point of view (Ruh)? t! 3.2096 3.2016: Yau Selected this answe correct answer 4.0.096 196 1998