I do not understand why E is not correct. The question isn't about eligibility its about who gets the award. Both people can be eligible and one is going to get the award due to the second half of the stimulus. Why do we have to rule out that Penn is not eligible and therefore means that he won't get the reward when both can have exemplary records but the winner is going to be the one that went above and beyond and saved lives. This doesn't make sense to me.

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That sounds like it would be classified as background information.