2015 Mock Exam Q40 MC morning

The question is whether we should hedge the GBP exposure? The answer is yes we hedge.

However, my understanding is We need to short the GBP for hedge when we have exposure to GBP. Given that GBP is expected to increase .75%, why we need to hedge it by shorting the Gbp?

Which case is it? I only have access to mock 2017…