[Low Tech] Edge Protection and Chainmail

[VariousRen]

A question came up recently while using the "Blunt Trama and Edge Weapons" rule on LT pg.102. A character wearing fine chainmail (DR4, 2 vs crushing) was hit for 7 points of cutting damage. That isn't quite enough damage to cut cleanly through the armour, so the damage is treated as crushing. We couldn't decide if:

A) The damage was originally cutting, so the chainmail provides 4DR against it. 3 damage penetrates but does not get the cutting modifier.

B) The damage is turned into crushing, so the chainmail has DR2. 5 damage penetrates.

An additional thought that came from this is that fine and very fine bladed weapons might not receive their damage bonus unless they are able to cut completely through armour.

Some advice on which is the best way to handle it would be appreciated!