SFoyil

That's the approximate way.

The exact way is to divide : (1+2YrSpot)^2/(1+1YrSpot)

so Forward rate for 1 year , 1 Year from now = (1.057492^2)/1.052498

which gives you in one stroke 1.06251 , or 6.25%

SFoyil

(1.057492^2)/1.052498 - 1


is approximately the same as

2 * .057492 - 052498

.... to the fifth decimal place. While the former is "exact" , at a pinch you can do the latter in an exam and get the right answer out of the choices.

Aztec's answer and the reasoning is correct .