As you are backing it you will probably be fine.
Purple streaks are often ok, but sometimes a small branch or pin that has been cut off and grown over can be rotten and the overyling wood may show as a purple patch so if you can see one end of a knot but not the other look out for a purple mark indicating where it's grown over as a 'blind' knot.
This post shows the most extreme case I've met... but if you follow the blog you'll see I magaged to excavate and plug it.
http://bowyersdiary.blogspot.co.uk/2012/01/mystery-knot.htmlOften it just shows where there was an adjacent knot or feature which has been lost when the stave was sawn out and the stave reduced.
It's amasing how many knots on the edge of a stave disappear as it's worked down... sometimes I take the trouble to plug 'em, only to find they have completely disappeared in the finished bow. I take a better safe than sorry approach to knots these days. Others just leave 'em very proud, all down to your own preference/experience.
The back is IMO the most critical, but you don't want any pockets of rot hidden in the belly which could collapse.
Del