That will crack/splinter on you. I would suggest narrowing and/or rounding that edge until that knot is gone.
I totally agree with you here, with the caveat that, unfortunately the board is only about 1-1/4" wide to start with. Narrowing it until the knot disappears will leave it less than 1" wide. The best approach is BARELY narrowing the board, and then rounding the corners, or even making a crowned belly, along with whatever side limb taper, and MAYBE you have something to work with.
Some others have said that knots that small are negligible. MOST of the time, in a nice wide stave, i'd agree. In this case, the stave is tiny, so the knot is proportionally large. The grain around the knot is the just as big a problem as the knot. It's oak, which likes much more width in the limb, it's a board which is some increment weaker than a split stave, and it doesn't seem to be where you can hide it in a handle or anything. It adds up.