Use the Information Provided Below to Answer the Following Question(s)

Multiple Choice

Use the information provided below to answer the following question(s) .
The exchange rate between the British pound and the U.S. dollar is 2. In England, the price level is 1.0 and the one-year interest rate is 20%. In the United States, the price level is .8 and the one-year interest rate is 8%. The inflation rate in both countries is zero.
-Refer to the information above.The real exchange rate (from the United States' perspective) is

A) 0.625.
B) 0.8.
C) 1.6.
D) 2.0.
E) none of the above