Step-by-step solution using Interest Rate Parity (IRP):

The interest rate parity theorem states: $F_0 = S_0 \times \frac{(1 + R_q)}{(1 + R_b)}$

Where:

• $S_0$ = Spot rate = R$3.500 per USD
• $R_q$ = Quote currency (BRL/Brazil) interest rate = 9.0%
• $R_b$ = Base currency (USD/US) interest rate = 1.0%
• $T$ = 1 year

Calculation: $F_0 = 3.500 \times \frac{(1 + 0.09)}{(1 + 0.01)} = 3.500 \times \frac{1.09}{1.01}$

$F_0 = 3.500 \times 1.07921 = 3.7772$

Forward rate ≈ R$3.78

The answer is (c) R$3.78. Note that the BRL is selling at a forward discount (forward price higher than spot) because Brazil has a higher interest rate than the US — consistent with IRP, the higher-yielding currency must depreciate forward to prevent riskless arbitrage.