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This paper is concerned with the error performance analysis of binary differential phase shift keying (DPSK) with differential detection over the nonselective Rayleigh-fading channel with selection diversity reception and with an additive, correlated, Gaussian interference process in each diversity channel. The fading process is assumed to have an arbitrary Doppler spectrum with arbitrary Doppler bandwidth. The selection schemes investigated are: 1) the selection combining (SC) scheme based on signal-to-noise power ratio (SNR); 2) the SC scheme based on signal-plus-noise (S+N); and 3) the SC scheme based on maximum output (MO). New, exact, closed-form bit-error probability (BEP) expressions are derived, and a performance comparison among the three SC schemes and combining diversity reception is given. The results obtained reduce to previously known results when the correlated interference process is absent, and when the fading process does not fluctuate over the duration of several symbol intervals. The results indicate that the performance of each scheme depends on the tradeoff between the number of diversity branches, the SNR, the interference level, and the correlation of the interference process. However, the SC-(S+N) scheme generally performs worse than the SC-SNR scheme, the SC-MO scheme and combining diversity reception scheme. The findings presented here are not only of fundamental theoretical value, but are also of practical interest to the designers of future mobile communication systems.