Explanation:

A high Real Exchange Rate would signify that the domestic good is relatively cheap: This statement is correct. In terms of the real exchange rate, a higher value indicates that the domestic goods are relatively cheaper compared to foreign goods.

A high Nominal Exchange Rate would signify that the Foreign Good is relatively expensive: This statement is incorrect. In terms of the nominal exchange rate, a higher value indicates that the domestic currency is stronger, but it does not necessarily imply that foreign goods are relatively more expensive. It depends on other factors like inflation rates.

When the real exchange rate is equal to one, the two trading countries are said to be in purchasing power parity: This statement is correct. Purchasing power parity (PPP) is a theory stating that exchange rates between two currencies are in equilibrium when their real exchange rate is equal to one.