The Fall: Agency vs. Knowledge of Good and Evil

[Hazzard]

I am a little confused about The Fall.

Here is what I think I understand ... Adam and Eve were in the garden. They were required to choose between one of two paths: (1) not partake of the fruit, stay in the garden forever, never know "good and evil," remain innocent, etc.; (2) partake of the fruit, leave the garden, know "good and evil," have kids, etc.

Presumably, then, they had agency before they partook of the fruit; otherwise, they would not have been able to choose between the two options. Correct?

Assuming they already had agency, what does it mean to have "knowledge of good and evil?" Does it mean "knowledge that good things and bad things will happen to you," or does it mean "some sort of increased agency that allows you to know the difference between right and wrong to a greater extent than you did before The Fall," or does it mean something else?