Suppose that in December 31 of 2017, the dollar exchange rate with the RMB (the Chinese currency) is 6.28 RMB/$. Over the year 2018, the Chinese inflation rate is 3%, and the U.S. inflation rate is 6%. If the exchange rate at the end of the year 2018 is 6.89 RMB/$, does the Chinese RMB appear to be overvalued, undervalued, or at the PPP level? Explain based on your calculation.