Because of Inflation, the Prices of Australian Goods Are Rising

Multiple Choice

Because of inflation, the prices of Australian goods are rising faster than prices of goods in Great Britain. If purchasing power parity holds, then:

A) the Australian dollar will depreciate against the British pound.
B) the Australian dollar will appreciate against the British pound.
C) the value of the Australian dollar relative to the British pound will remain the same.
D) it will take fewer Australian dollars to buy one British pound.