using <xsl:if> inside the select menu

Please help me to set up code that will work. I am trying to set up
selected item in the select menu from the XML.
Without <xsl:if> it works, but otherwise not.

<xsl:variable name='G' select='1'/>
	<xsl:value-of select='$G' />
	
 <select name = "res_level" >
       <option value="K">
		<xsl:if test="'$G' ='K'">
		    <xsl:attribute name="selected">selected</xsl:attribute>
        	</xsl:if>
	K</option>
	<option vaule="1">
		<xsl:if test="'$G' ='1'">
         		 <xsl:attribute
name="selected">selected</xsl:attribute>
        	</xsl:if>
	1</option>
      <option value="2">
		<xsl:if test="'$G' ='2'">
		   <xsl:attribute name="selected">selected</xsl:attribute>
		</xsl:if>
	2</option>
</select>


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