Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Doug Abitbol is a portfolio manager for Polyi Investments, a hedge fund that trades in the United States. Abitbol manages the hedge fund with the help of Robert Olabudo, a junior portfolio manager.Abitbol looks at economists’ inflation forecasts and would like to examine the relationship between the US Consumer Price Index (US CPI) consensus forecast and the actual US CPI using regression analysis. Olabudo estimates regression coefficients to test whether the consensus forecast is unbiased. If the consensus forecasts are unbiased, the intercept should be 0.0 and the slope will be equal to 1.0. Regression results are presented in Exhibit 1. Additionally, Olabudo calculates the 95% prediction interval of the actual CPI using a US CPI consensus forecast of 2.8.
| Exhibit 1Regression Output：Estimating US CPI |

| Notes：1The absolute value of the critical value for the t-statistic is 2.002at the 5%level ofsignificance.2The standard deviation of the US CPI consensus forecast iss， =0.7539.3The mean of the US CPI consensus forecast is X=1.3350. |

| Regression Statistics |
| R2 | 0.9859 |
| Standard error of estimate | 0.0009 |
| Observations | 60 |
| Intercept | Coeff cients | Standard Error0.0002 | t-Statistic |
| 0.0001 | 0.0155 | 0.5000 | 63.4194 |
| US CPI consensus forecast | 0.9830 |


Finally, Abitbol and Olabudo discuss the forecast and forecast interval:Observation 1: For a given confidence level, the forecast interval is the same no matter the US CPI consensus forecast.Observation 2: A larger standard error of the estimate will result in a wider confidence interval.
Which of Olabudo’s observations of forecasting is correct?
Option A:Only Observation 1.
Option B:Only Observation 2
Option C:Both Observation 1 and Observations 2.

Answer: B