is the option picked in the photo the correct answer if so could you explain to me the logic/steps that you took to determine this?

Question 2:

Question 2 1.2 points Saved Assume the following holds at t=0: 1. The market expects the Dollar to nominally appreciate by 10% against the Euro over the next period 2. Australian expected inflation is 10% over the next period 3. European expected inflation is 5% over the next period 4. The real Dollar per Euro exchange rate is q = 1.1 What is the market's expectation of the real Dollar per Euro exchange rate at t=1? O A. Approximately 1.045 O B. Approximately 1.265 O C. Approximately 0.935 O D. Approximately 1.14 O E. The above information is not enough to calculate qeAt time i=0, R5 =15%, R=15%, and EM =1. Assume that Reserve Bank efAusn-alia permanently Increases money supply inAustralia by 30% at time t=2. In addition, assume the following: I. The policy change is anticipated at i=1 2' Prices are xed in the short run 3. Prices completely adjust to the change in moneyr supplyr in the long run 4. In the short run, domestic net exports (NX) decrease due to an increase in E ( due to the J-curve effect). stag =15% att=1andt=2 Select the most appropriate option: 0 A. Eye =l.3 and R5 =1 5% at F] and in the long-run; Eye >13 and R$l.3 and R$l.3 and K$1 .3 and R$l.3 and R$