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Normalizing data for use with the Common Information Model (CIM) in Splunk is vital for achieving consistency across diverse data sources. The method of using Knowledge Objects is indeed correct for this purpose. Knowledge Objects in Splunk, such as event types, tags, and calculated fields, allow users to apply consistent definitions and structures to data. This facilitates transforming raw data into a format that adheres to CIM standards, enabling efficient searches and reporting.

By leveraging Knowledge Objects, users can map specific fields to CIM-compliant field names, creating a standardized approach to data representation. This enables easier correlation, comparison, and analysis of data across different sources, which is a key advantage of using CIM in Splunk.

The options regarding index time or needing the CIM Add-on do not accurately represent the flexible normalization capabilities that Knowledge Objects provide. While the CIM Add-on does assist in this process by providing predefined mappings and field extractions, normalization can be achieved independently by utilizing Knowledge Objects without being contingent upon the add-on.