True statement from below ....

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Let $A$ be $5\times 5$ $\textit{complex}$ matrix such that $(A^2-I)^2=0$. Assume that $A$ is not a diagonal matrix. Which of the following statement is true ?

  • $A$ is diagonalizable.

  • $A$ is NOT diagonalizable.

  • No conclusion can be drawn about the diagonalizability of $A$.

I feel that third option is correct but I don't know how to construct such counterexamples for first both options. Can someone please give me any hint ?

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The given condition is equivalent to say that $\;A\;$ is a zero of the polynomial $\;(x^2-1)^2\;$, so the minimal polynomial of $\;A\;,\;\;p_A(x)\;$ is a divisor of the above polynomial.

Remember now that $\;A\;$ is diagonalizable iff $\;p_A(x)\;$ is a product of different linear polynomials, so since $\;(x^2-1)^2=(x-1)^2(x+1)^2\;$ , it is enough to find a matrix whose minimal polynomial is not $\;(x-1)\,,\,\,(x+1)\,,\,\,\text{or}\;\;(x-1)(x+1)\;$ , for example

$$A=\begin{pmatrix} 1&1&0&0&0\\ 0&1&0&0&0\\ 0&0&-1&0&0\\ 0&0&0&1&0\\ 0&0&0&0&1\end{pmatrix}$$

is such a matrix.