Suppose that the one$-$year interest rate is $5\mathrm{.}0$ percent in Italy, the spot exchange rate is $$1\mathrm{.}20/,$ and the one$-$year forward exchange rate is $$1\mathrm{.}18/.$ What must one$-$year interest rate be in the United States? Hint: Use exact version of IRP equation.

Group of answer choices

$3\mathrm{.}25\%$

$6\mathrm{.}78\%$

$4\mathrm{.}75\%$

None of the above