  New data analysis with Pauli blocking explains observation of CP violation in
$B^o\rightarrow K\pi$ decays, absence in $B^{\pm} \rightarrow K\pi$ decays and
gives new predictions agreeing with experiment. Branching ratio data show pure
I=1/2 amplitude predicted by pure penguin transitions for separate relations
within charged and neutral B decays, but strong violation of penguin I=1/2
isospin relation between charged and neutral decays. $B(B^o \rightarrow K^+
\pi^-) - 2B(B^o\rightarrow K^o \pi^o) =
  %(19.4 \pm 0.6)- 2\cdot (9.4 \pm 0.6) =
  (0.6 \pm 1.3)\cdot 10^-6 \approx 0$
  $2B(B^+ \rightarrow K^+ \pi^o) - B(B^+ \rightarrow K^o \pi^+) = %(25.8\pm
1.2) - (23.1 \pm 1.0) = (2.7 \pm 1.6)\cdot 10^-6 \approx 0$
  ${{\tau^o}\over{\tau^+}}\cdot 2B(B^+ \rightarrow K^+ \pi^o) - B(B^o
\rightarrow K^+ \pi^-) = (4.7 \pm 0.82)\cdot 10^-6 \not= 0$
  This contrast between pure I=1/2 observed in individual charged and neutral
final states and I=1/2 violation in relations between them is unexpected in
previous treatments. Pauli blocking predicts this contrast by noting that two
identical $u$ quarks in a relative s-wave are Pauli blocked. Tree diagram $\bar
b\rightarrow \bar s u \bar u$ for $\bar b$ producing $u$ quark at weak vertex
and tree-penguin interference producing CP violation are Pauli suppressed for
$B^+$ decays with identical $u$ quark spectator. No suppression in $B^o$ decays
with spectator $d$ quark. $B\rightarrow K\pi$ data analysis discards all
amplitudes containing two identical $u$ quarks in final state and predicts
observed isospin relations by using only Pauli-favored amplitudes
${B_u}\rightarrow \bar s du \bar d$ and ${B_d}\rightarrow \bar s ud \bar u$.
Pauli-favored transitions explain dependence on flavor of spectator quark which
does not participate in the weak interaction.
