Which of the following is true with respect to the relationship between inflation, real rates of return, and nominal rates of return?

Question $36$ options:

The higher the inflation rate, the higher the real rate of return required by an investor.

The higher the inflation rate, the higher the nominal rate of return required by an investor.

The higher the inflation rate, the higher the real rate and nominal rate of return required by an investor.

Inflation does not impact either real or nominal rates of return required by an investor.