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Unused I/O pins should have a defined level and not be left floating. One way to do this is to leave the pin unconnected and configure the pin as a general-purpose I/O input with pullup resistor. This is also the state of all pins during and after reset (except P1.0 and P1.1, which do not have pullup or pulldown capability). Alternatively, the pin can be configured as a general-purpose I/O output. In either case, the pin should not be connected directly to VDD or GND, in order to avoid excessive power consumption.
