If Joshua is applying for a loan, which will give him the better deal: loan $1,$ a $$1,000$ loan at $3\%$ real interest rate with $2\%$ inflation, or loan $2,$ a $$1,000$ loan at $6\%$ nominal interest rate with $2\%$ inflation?

Loan $1$

Neither loan is a good deal.

Both loans are equal.

Loan $2$