keshi co (dec 16)

The question makes it clear throughout that they want to hedge against changes in interest rates.

They are borrowing money (and there is no mention of exchange rates anywhere in the question).

Obviously for part (b) it is important to mention the other roles of the treasury department (as are listed in the first paragraph).

The second and third paragraphs of the question state that they are borrowing money and are unsure about the interest rates.

Requirement (a) asks for a recommendation as to a hedging strategy for the borrowing.