I'm supposed to apply the KNN Method in excel to answer the question but I can't figure out how to account for the categorical variables.

A new applicant, age 45, is applying for a loan. Using the table below, what is the estimated probability the loan will be approved?k=4. Record 1 Age 34 24 49 2 Marital Other Other Married Other Married Loan $ 4,500.00 $21,000.00 $12,000.00 $17,000.00 $13,000.00 $ 5,000.00 Risk Low Medium Low High High Default No Yes Yes No No 3 4 32 5 44 6 53 Multiple Choice The probable default rate is 25%, the loan will be declined. The probable success rate is 30%, the loan will be approved. The probable success rate is 25%, the loan will be approved. o The probable default rate is 75%, the loan will be declined. A new applicant, age 45, is applying for a loan. Using the table below, what is the estimated probability the loan will be approved?k=4. Record 1 Age 34 24 49 2 Marital Other Other Married Other Married Loan $ 4,500.00 $21,000.00 $12,000.00 $17,000.00 $13,000.00 $ 5,000.00 Risk Low Medium Low High High Default No Yes Yes No No 3 4 32 5 44 6 53 Multiple Choice The probable default rate is 25%, the loan will be declined. The probable success rate is 30%, the loan will be approved. The probable success rate is 25%, the loan will be approved. o The probable default rate is 75%, the loan will be declined