The Mexican peso$/$USS spot exchange rates at the beginning and the end of a year were $12\mathrm{.}6$ and $14\mathrm{.}0,$ respectively. During the year inflation rates in Mexico and US were at $23\%$ and $5\%,$ respectively, and the one$-$year interest rates in the year in pesos and dollars were $15\%$ and $8\%,$ respectively. What happened to the real value of the peso during the year?

Mexican peso depreciated by $7\mathrm{.}00\%$ against US dollar

Mexican peso appreciated by $7\mathrm{.}00\%$ against US dollar

Mexican peso depreciated by $5\mathrm{.}43\%$ against US dollar

Mexican peso appreciated by $5\mathrm{.}43\%$ against US dollar