a$)$ The Survey of Financial Forecasters $($SFF$)$ publishes regularly long$-$term inflation forecasts over the next five years. China and Euro area inflation rates are expected to be $2\mathrm{.}9$ percent and $1\mathrm{.}6$ percent per annum over the next year, respectively, and later on$,$ Chinese $($European$)$ inflation rate is projected to rise at an annual growth rate of $2\%(5\%).$ Based on the purchasing power parity $($PPP$)$ relation, what would be CNY$/$EUR exchange rate estimate over five years, if the current spot rate is $7\mathrm{.}6381?$

b$)$ Suppose that SFF forecasts are accurate for the next year $($same as in part a$),$ however they are less reliable for longer horizons. Instead, you use a na$$ve random walk model to forecast inflation beyond one year $($year $2$ to year $5).$ Note that inflation follows a random walk, not the consumer price index! Based on the purchasing power parity $($PPP$)$ relation, what would be CNY$/$EUR exchange rate estimate over five years, if the current spot rate is $7\mathrm{.}6381?$ Compare your results to the forecasts obtained in part a$).$

c$)$ Describe the Fisher Hypothesis and show what it implies under the assumption that both PPP and UIP parity relations hold.

This is the whole question, but i mainly need the complete solution for b$)$