Robert was pleasantly surprised when his nephew announced that he would be attending Fulmer University in the fall. In support of this decision, Robert agreed to pay for his nephew's college tuition expenses and wrote him a personal check for the first year of tuition. Which one of the following statements is correct regarding the gift tax implications of this transfer?

A)

The transfer will be exempt from the gift tax since it will be used for tuition and educational expenses.

B)

The transfer will be exempt from the gift tax so long as it is used for tuition, room and board, books, and supplies.

C)

The transfer will be exempt from the gift tax since it is a present interest gift.

D)

The transfer will not be exempt from gift tax, but the gift tax annual exclusion will apply.