Suppose the interest rate on a 1-year T-bond is 3.0% and that on a 2-year T-bond is 5.0%. Assuming the pure expectations theory is correct, what is the market's forecast for 1-year rates 1 year from now?

a. 7.36%

b. 7.04%

c. 8.16%

d. 6.01%

e. 9.04%