Consider the following statements regarding the Rupee-Dollar exchange rate in light of the Purchasing Power Parity (PPP) theory:
- Purchasing Power Parity suggests that the exchange rate between two currencies should be equal to the ratio of price levels in the two countries.
- PPP theory states that the exchange rate between two currencies should not be related to the ratio of their price levels.
- The PPP theory mandates that the exchange rate should be determined by the value of a third major currency such as the Euro.
Which of the above statements is/are correct?