/ spot exchange rate is 114/. The 1 year expected inflation rate is 3% in Japan, and 5% in Euroland, respectively. All others being equal, if the actual (ex post) nominal exchange rate turns out to be 112.91/ after a year, what is the real rate of appreciation (or depreciation) of the base currency over this period? Select one:

a. Yen has a real appreciation of 2%.

b. Euro has a real depreciation of 1%.

c. Yen has a real depreciation of 2%.

d. Euro has a real appreciation of 1%.