The answer is "None of the above" but explain why

One year ago, you bought a two-year swap to exchange LIBOR for 2.74% fixed-rate payments on a $100 million notional principal. Back then, LIBOR rates were as follows: One-year spot rate was 2% per year. Second-year forward rate was 3.5%. Now it is one year since you bought the swap, the first payment has already been made and only one more payment remains. Second-year rate turned out to be 2.5%. Which of the following statements is correct?

You are the receiver of the fixed-rate payment

The floating-rate payment is lower in the second year than it was in the first year.

You face counterparty default risk now

None of the above