If the NZD is expected to depreciate by 1.88% relative to the USD over the year, and the NZD is selling at a discount of 2.78% relative to the USD at the forward market over the same time period, then the expected forward market return from buying NZD dollars forward is ____.

1. 1.10%
2. 4.66%
3. -0.9%
4. 0.9%