Question 3 1 pts Suppose that the annual interest rate is 5% in the United States and 3.5% in Germany, and that the spot exchange rate is $1.12/ and the one-year forward exchange rate, is $1.16/. This is an example where interest rate parity holds. This is an example of a purchasing power parity violation and an arbitrage opportunity. This is an example of an arbitrage opportunity; interest rate parity does not hold. O This is an example where purchasing power parity holds