Please determine TRUE or FALSE for the following 2 statements and explain WHY.

1). Last year, the USD depreciated 4% in nominal terms versus the MXN. Inflation in the US was 3% and inflation in Mexico was 8%. So, in real terms, the USD depreciate approximately 9% (give or take 1%) relative to the MXN.

2). Last year, the USD depreciated 4% in nominal terms versus the MXN. Inflation in the US was 4% and inflation in Mexico was 10%. So, in real terms, the USD depreciate approximately 2% (give or take 1%) relative to the MXN.

Thank You!