(SHOW CALCULATIONS) Assume U.S. and Swiss investors required a real rate of return of 3%. Assume the nominal U.S. interest rate is 6% and the nominal Swiss rate is 7%. According to the international Fisher effect, the Swiss Franc is expected to __________by about ________ versus the dollar.

A. Appreciate; 2%

B. Depreciate; 2%

C. Appreciate; 3%

D. Depreciate; 3%

E. Depreciate; 1%