Purchasing Power Gain/Loss CFAI BB FRA - Reading 18, Example 7

I am scratching my head trying to understand Purchasing Power Gain/Loss. I understand (sorta) loss from holding cash beginning balance in cash and increase in cash during the year (because cash depreciates in value during high inflation).

What I am confused about is Gain from holding note payable - is the logic that my debt burden decreases during the high inflationary period??

Yes, you can possibly lend it out at higher rate, resulting in Gain.