English Translation
You were totally right.
I’m confused on the grammatical function of “lo” here.
This is a regular article + adjective = noun phrase, only because the article is neuter, it refers to the quality in the abstract rather than something or someone specific. Compare ‘el malo’ = ‘he who is bad, the bad one’ with ‘lo malo’ = ‘that which is bad’, or here ‘lo cierto’ = ‘that which is true, the truth’.
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