Transitive permutation groups in which all derangements are involutions

Let G be a transitive permutation group in which all derangements are involutions. We prove that G is either an elementary abelian 2-group or is a Frobenius group having an elementary abelian 2-group as kernel. We also consider the analogous problem for abstract groups, and we classify groups G with a proper subgroup H such that every element of G not conjugate to an element of H is an involution.