The 1-year forward rate for the British pound is 0.5429 = $1. The spot rate is 0.5402 = $1. The interest rate on a risk-free asset in the U.K. is 3%. If interest rate parity exists, a 1 year risk-free security in the U.S. is yielding _____. (Please explain the calculation.)

a. 2.49% b. 2.91% c. 2.25% d. 2.83% e. 2.67%