Textbooks International Inc. (TII), a college textbook publisher based in the U.S., has one foreign operating subsidiary, Warsaw Publishing Company (Warsaw). Warsaw is a self-contained textbook publishing firm that is highly integrated in the local Polish economy and is not dependent on its parent (currency), TII. Despite its successful operations, the local economy of Warsaw has experienced inflation of 28%, 32%, and 30% over the past three years, respectively. Given the above, what is the current functional currency and translation method used for reporting Warsaw's financial results? Reporting currency using the remeasurement method O Local currency using the translation method Reporting currency using the translation method Local currency using the remeasurement method