Expected Exchange Rate Under PPP

In an increasingly interconnected global market, currency exchange rates often reflect the principles of parity conditions. Consider a scenario where the current exchange rate between the Euro (EUR) and the US Dollar (USD) is 1.20. According to the Purchasing Power Parity (PPP) theory, the inflation rates in the Eurozone and the United States are expected to be 2% and 4% respectively over the next year.

After a year, what is the expected exchange rate if PPP holds true?