Suppose the expected annual inflation rates in each of the next 3 years are as follows: Year 1: 1.5%, Year 2: 2.3%, Year 3: 3.4%. Based on the Expectations Theory of the term structure of interest rates, what is IP3; That is, the expected average inflation rate for year 3? 1) 3.4% 2) 1.9% 3) 2.4% 4) 3.0%