Your client Zara has a total debt service ratio of $46\%.$ She wants to renegotiate her mortgage within the next year. You tell her that she should focus on reducing her debt service ratio. How much will she have to reduce it by to qualify for credit under standard guidelines?

I. By $6\%,$ to $40\%$

II$.$ By $2\%,$ to $44\%$

III. By $11\%,$ to $35\%$

IV$.$ by $1\%,$ to $45\%$