Two firms enter into a swap contract on $10,000 that expires in three years. Firm A agrees to pay Firm B a fixed 5% interest rate, while Firm B agrees to pay Firm A an interest rate 2% above SOFR. If SOFR rates are 1%, 2%, and 3% in each of the next three years, how much will Firm A pay to Firm B in year 2?

a) $0

b) -$100

c) $100

d) $200