Knock limited or not

Does it mean that even with a turbocharged engine, if E85 is used, the engine would not be knock limited?

You can't assume that. There are lots of variables that could lead to being knock limited, the solution is to use fuel with more octane. There are fuels with higher octane values than E85.

As David said - maybe yes, maybe no - it depends.

As you're in Malta, and they have some VERY potent engines there, I'd suggest checking out what others with similar power units are running, and if they have problems.

The other problem is the variable quility of commercial E85 unless you buy in bulk from a reputable supplier, or mix your own - the better the petrol/gasoline the better the results.

Ultimately, you're going to have to try it and see - you may be fine, you may need something a bit better.