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Why are donuts called donuts?

I've been thinking hard, and come up with two possible explanations. The "...nut" part is a given; they're in the shape of a nut (not the kind that grows on trees, as we all know donuts don't do that). But, when it comes to the "do..." part, I need the help of the rest of the community to determine which is the correct one! So, please vote on what you believe is the right answer. :)

Thank you, and Merry Christmas!
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