It would not be valid xml to remove the </p> since you would leave an unclosed paragraph in your document. This would cause problems with some reading systems, (I've caused such problems before in Adobe Digital Editions by using similar, badly formed xml.)
The calibre generated code looks as though it should faithfully display the text as shown in your original, (which appears to have a line break), so, on this basis perhaps your source needs a bit of a tidy up if you want to achieve a different result on conversion.
What format is your original document in? (Plain text?).
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