An arbitration statement/clause in a contract between O and C provided that the parties agree to arbitrate all disputes under this contract. C refused to perform under the contract because she claimed that O defrauded her into making the contract by telling her that he would award two other construction contracts to C when he know he had already awarded them to another contractor. C claimed that she relied on the promise by making a much lower bid than she would have ordinarily made. O denied making the promise and demanded arbitration. C refused to arbitrate and started a court action for fraud. O insists on arbitration.

Questions:

1. Must this dispute be resolved by arbitration?
2. Who decides?