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The trade-off here is that when you increase the timer interrupt rate, the timer interrupt processing will then take a proportionately larger amount of your CPU bandwidth. The recommended way to get very high timer resolution without increasing the timer interrupt rate (in most use cases) is to use a Tickless Mode OS. For example, in the Tickless configuration, you could have CONFIG_USEC_PER_TICK set to 1 for a 1MHz timer resolution (with no interrupts). If your target periodic processing time is still 1Khz, then this periodic processing could be met with good precision.
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