Answer: B. Future value of one.
Step-by-step explanation:
An annuity would be used had there been a series of equal deposits or cashflow investments made by Peter over the 3 years. He only made one investment therefore this is not an annuity which cancels out options A and C.
Maturity date is 3 years into the future so this is a future value concept not a present value one. Future value of one is the correct time value concept to use here.
The value at the end of the three years by the way is;
= 100,000 * ( 1 + 3.5%)³
= $110,872