Suppose, inflation is expected to be $8\%$ in India and $4\mathrm{.}7\%$ in the U$.$S$.$ during the next one year.

The spot exchange rate is INR $75\mathrm{.}00/$USD$.$ According to PPP$,$ next year's spot rate ought to

be:

INR $0\mathrm{.}0137/$ USD

INR $0\mathrm{.}0129/$ USD

INR $77\mathrm{.}3639/$ USD

INR $72\mathrm{.}7083/$ USD