Since the nominal interest rate is 3% and the inflation rate for the is 3.5%, then the value of the real rate of return will be -0.5%.
Your question is incomplete. Therefore, an overview of an interest rate will be given based on the information that we've. The nominal interest rate is the actual price that is paid by borrowers while the real interest rate accounts for Inflation.
In this case, the nominal interest rate is 3% and the inflation rate is 3.5%. Therefore, the real rate of inflation will be:
= Nominal interest rate - Inflation rate
= 3% - 3.5%
= -0.5%
Therefore, the real rate of return will be -0.5%.
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