In the case of a below-market loan between family members, if the imputed interest rules apply:

I. The borrower must recognize interest income.

II. The lender has interest income.

III. The lender is deemed to have made a gift.

IV. The borrower has deductible interest expense.

A) Only I is true.

B) II, III, and IV are true but I is false.

C) II and III are true, but I and IV are false

D) All of the above are true.