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General Information:
The word "He" refers to Jesus Christ.
Son of God
This is an important title for Jesus that describes his relationship to God. (See: rc://en/ta/man/translate/guidelines-sonofgodprinciples)
has given us understanding
"has enabled us to understand the truth"
life
Here "life" stands for the right to live forever by God's grace and love. See how you translated this in 1 John 1:1-2. (See: rc://en/ta/man/translate/figs-abstractnouns)
He is the true God
"Jesus is truly God"
He is ... eternal life
This stands for the thought that Christ gives us eternal life. (See: rc://en/ta/man/translate/figs-metonymy)
Children
John was an elderly man and their leader. He used this expression to show his love for them. See how you translated this in 1 John 2:1. AT: "My dear children in Christ" or "You who are as dear to me as my own children" (See: rc://en/ta/man/translate/figs-metaphor)