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1) Option 1: If you already have your National Language by the time you get to Skills, you 'lose' 1 point of Passive Logic in languages since it's still taken up by your National Language.
2) Option 2: If you already have your National Language by the time you get to Skills, you can choose your full Passive Logic in other languages
Option 2 would be correct. Both examples in the book (the Val and Elorii) show this.
The Val come from Coryan and starts with High Coryani. He has a Passive Logic Value (PLV) of 2.
Coryan's national language is Low Coryani so with the first point that is selected. The second point he learns Milandisian.
The Elorii comes from Elonbe and starts with Eloran, and Low Coryani. She has a PLV of 3. Elonbe's national language is Eloran, so she takes 3 new languages Kio, Ssethric, and Ss'ressen.
Step 1 Pick a race and get Racial language(s) for free.
Step 2 Pick a nation you come from.
Step 3 Use your Passive Logic Value to select languages 1 must a national language.
For someone like the Elorii, Dwarfs and Gnomes from dwarven nations, their Racial language is also their national language so they can pick all new languages using their PLV.
A Kio from the League of Princes that started with Kion and Low Coryani, would have to learn Unden first before taking new languages.
A Kio from the League of Princes that started with Kion and Unden, can take all new languages using their PLV.
A human/gnome/dark-kin from the Hinterlands starting with Low Coryani, would have to take Erdukene, Yhing hir,
or Skohir before taking new languages using their PLV.
A Val from Almeric would start with High Coryani, and would have to learn Milandisian or Low Coryani before new languages.
A human/gnome/dark-kin from Almeric starting with Low Coryani, would have to learn Milandisian before learning new languages.
I could keep on going but I hope the idea is clear.