Please help with the following problem regarding international finance. Provide step by step calculations in the solution.
Problem: On August 1st 2009, the USD/SAR exchange rate was SAR9.20 per USD. On August 1st 2010 (1 year later), the USD/SAR rate moved up to USD/SAR9.80. During this period, one year nominal risk free interest rate in the US was 3.5% per annum (per year). The real interest rate in the US was 1.5%. On August 1st, 2010, economists shared the consensus view that the USD/SAR rate was at Purchasing Power Parity equilibrium. Provided that IFE holds, what would be the best forecast of South African inflation between August 2009 and 2010?