An Investor Wants to Be Able to Buy 4% More

Multiple Choice

An investor wants to be able to buy 4% more goods and services in the future in order to induce her to invest today. During the investment period prices are expected to rise by 2%. Which statement(s) below is/are true?
I. 4% is the desired real rate of interest
II. 6% is the approximate nominal rate of interest required
III. 2% is the expected inflation rate over the period

A) I only
B) II only
C) III only
D) I and II only
E) I, II, and III are true