Interest rate forwards

Good day tutor,

I am reading an article on INTEREST RATE FORWARDS (in detail for the first time) and got confused by the “in summary” section.

I’ll try to summarise everything below:

Annual spot yield curve:
Year 1: 3.5%
Year 2: 4.6%
Year 3: 5.4%

Annual forward rates:
Year 2: 5.71%
Year 3: 7.02%

In summary:
Supposing the company wants to borrow a sum of money for three years on the basis of the above rates:
i. it could pay annual interest at a rate of 5.40% in each of the three years, or
ii. it could pay interest at a rate 3.50% in the first year, 5.71% in the second year and 7.02% in the third year, or
iii. it could pay annual interest at a rate of 4.60% in each of the first two years and 7.02% in the third year.

I am so confused with point i. If the company can pay interest at 5.4% for each of the 3 years, then why should it even consider point ii? The company would have to pay much higher interest rates in years 2 and 3 under point ii than it would have to under point i. Wouldn’t the spot yield rates change every year? I’m dying from this confusion