One peso is worth 7.40 dollar and 0.65 pound. One pound is worth 9.40 dollar. Which statement is most consistent with the triangle arbitrage equilibrium condition?

A) the peso is undervalued relative to the pound

B) the peso is undervalued relative to the dollar

C) the pound is overvalued relative to the dollar D)Two choices, A and B, are correct

E) None of the A-B-C choices are correct