Answer: British interest rates exclusively.

The correct answer is **B** because the currency denomination of a bond's cash flows determines which country's interest rates impact its price. Since the bond is denominated in British pounds, its price will be affected by changes in British interest rates, regardless of the issuer's country of origin (the US in this case). This aligns with the principle that bond prices are primarily influenced by the interest rates of the currency in which they are denominated.

Author: LeetQuiz Editorial Team