Evaluating Currency Exchange Rates through Purchasing Power Parity

Consider the concept of Purchasing Power Parity (PPP), which is a theory that suggests that in the absence of transaction costs and barriers to trade, identical goods should have the same price when expressed in a common currency. In a hypothetical scenario, the price of a basket of goods in Country A is 100 currency units, while the same basket of goods costs 150 currency units in Country B. If the current exchange rate is 1.4 currency units of Country A for 1 currency unit of Country B, which of the following statements best describes the situation regarding currency exchange rates and parity conditions?