All but one is prepared to compete in next week's competition.
OR
All but one are prepared to compete in next week's competition.
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It should be "are". "is" is a mistaken agreement of the verb with "one" rather than "all but one". The "compete ...
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It should be "are". "is" is a mistaken agreement of the verb with "one" rather than "all but one".
The "compete ... competition" repetition is noticeable. You could look for another word or phrase, such "take part in", for variety.