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However, the last part of the ability will check how much life you've gained as the ability resolves, so if you've only gained 5 life this turn by the time the end step comes around, you could still gain 2 more life while this ability is on the stack in order to return the target creature card to the battlefield instead of your hand

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When Dion enters, create a 2/2 white Knight creature token

If an effect would set your life total to a specific number that's higher than your current life total, that effect causes you to gain life equal to the difference