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My guess is that the riddle has no perfect answer, thereby guaranteeing the squirrel an endless supply of nuts. (The source of all lays on lotus flower dreaming of an endless parade of purple squirrels) ;)

Yep. Sounds like an evil Archon in disguise. :o

Is there a way I can prepare myself? How do I know the question isn't rigged so that it's DESIGNED for me to fail?

I'd like to elevate this question to the judge. ;)