The Nominal Interest Rate in the U

Multiple Choice

The nominal interest rate in the U.S.is 5% and the nominal interest rate in Canada is 3%.The spot value of the U.S.dollar is 1 ($/Canadian dollar) and the forward rate is 1.2 ($/Canadian dollar) .Which of the following is NOT true?

A) The dollar is likely to appreciate in spot markets.
B) The interest parity condition does not hold.
C) The dollar is trading at a forward discount.
D) Money will flow into the Canada.