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I have an A from one IS school, which is ranked/considered better than another one from which I received II recently. Even if the second school gives me an A with full-ride (hypothetically), I am likely to prefer the first one. (a) is it ok to give up the interview in the second? (b) me giving up will help another applicant, right?
Sounds like you are dead set on IS school. It is okay to give up the interview. And yes you will be providing another spot for another applicant to hopefully have a chance to go to the second school.