You can say that the difference stands in their meanings, which is true; according to Longman English dictionary, Knowledge is the information, skills, and understanding that you have gained through learning or experience, while character is the particular combination of qualities that makes someone a particular type of person (characteristics).
Though the difference is in their meaning, knowledge is information gotten while character is qualities possessed, but diffenciating it using what it generates to individuals. Knowledge gives power, while character gives respect.
Knowledge gives power over everything that is to be known, it makes you to be learneded and have ideas on any given topic or situation; with knowledge, you hold the power to take charge and be in control of any given situation. But character on the other hand enables you to respect and be respected.
You might say that knowledge also gives you respect, which is true, but it doesn't give respect as much as character, because when an individual possesses too much knowledge, such power can get into the head and make them feel and behave proud, which is rude in the society. Thereby prevents them from being respected, and makes them to be avoided.
It is very possible for an individual to have both qualities, and still have the power and respect.
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