Question $2$: One year US and Brazilian Treasury yields are $4\mathrm{.}5\%$ and $9\mathrm{.}5\%$ respectively. Current spot rate is USD$/$BRL $2\mathrm{.}9580.$ If the US real interest rates are $2\mathrm{.}00\%,(25$ points$)$

a$.$ What should be $1$ year IFE forecast of USD$/$BRL future spot rate? $(15$ points$)$

b$.$ What should be the expected inflation in Brazil for the year ahead if IFE holds? $[$Use exact formula, not approximation$](10$ points$)$