Rules FAQ
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If White Graces is discarded from your hand as the cost of an ability, that cost is paid successfully even if you trigger the interrupt. The triggering condition of a card being discarded from your hand also still occurs and can be reacted to. For instance, you could trigger Reznak mo Reznak to gain 1 gold (but you cannot put White Graces into play since it is not in your discard pile).
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In order to bring a card into play as a duplicate, both the duplicate and the unique card that would be duplicated must be owned and controlled by the player attempting the duplication. (See Duplicates.)
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White Graces shares the interrupt window with Ser Meryn Trant. Since they are both replacement effects, whichever is triggered last will prevail. If both players pass, White Graces goes to the discard pile. (See Replacement Effects.)