This paper studies the category of grading-restricted -cofinite generalized modules for the vertex operator algebra associated to the -algebra . We first show that is the same as the category of finite length modules whose simple composition factors are the irreducible highest weight –modules of highest weight for , and hence carries a braided tensor category structure. Then we prove the fusion rules for the simple objects are governed by the Clebsch–Gordan rule. In particular, we prove Using the fusion rules and a recent result of Etingof–Penneys, we establish the rigidity of . We also show the semisimple subcategory generated by the simple objects is tensor equivalent to the category Rep of finite dimensional -modules.

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