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Challenge 201: Circle Conundrum

Can you find the minimum possible diameter of C?

Point A has co-ordinates (1,1), and point O is the origin (0,0).

Points P and Q must be placed such that the acute angles OPA and OQA are both 45o.

A circle C is drawn so that wherever P and Q are placed, these two points will always be either inside C or on its circumference.

What is the minimum possible diameter of C?