Suppose that the year 1 nominal interest rate in the UK is 1% and in Japan it is 0.1%. In this situatio, the interest party condition would suggest that the pound sterling nominal exchange rate vis-a-vis the Japanese Yen...

a) will depreciate by approx 0.9% over the next year

b) will stay put unless other shocks arrive

c) none of these above

d) will approximately by approximately 0.9% over the next year