> Interpretation A (Only one <Subject> element is required): One
> interpretation is that a SAML Assertion with an <AttributeStatement>
> element does not need a <Subject> element -inside- any child <Assertion>
> elements containing the <AttributeStatement>, but that such a SAML
> Assertion does require a <Subject> element at the root
> <Assertion>/<Subject> level.
That directly contradicts the text you're quoting.
> <!-- Does not contain a subject, because there is one in the
> encompassing assertion and this assertion is about the same subject ->
There is no relationship between those assertions, so they certainly don't inherit anything between them.
> Interpretation B
That is the one that actually follows the text of the spec.
-- Scott