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In a federal fraud trial, Defendant says he signed loan documents without reading them and did not know they contained false income figures. The government offers evidence that, six months earlier, Defendant submitted another loan application with the same false employer and inflated income. The government offers it only to prove knowledge. What is the best ruling?

Admit the evidence if the court finds it relevant to knowledge, supported by sufficient proof, and not unfairly prejudicial under Rule 403.
Exclude the evidence because other acts are never admissible in a criminal case.
Admit the evidence because it proves Defendant has a dishonest character.
Exclude the evidence unless Defendant first testifies.

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