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It would work the same way in PSP as Serena described for PS.
But we can't just shrink one layer on a image, but you can use the deform tool and just bring in your merged layer until you see the white area evenly around all four sides. (You could do minor adjusting with the move tool also if you need to line it up just right)
98% at that size, I am guessing is just a very few pixels right Serena?
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