The State Department was forced to admit yesterday that it had severely underestimated the number of terrorist attacks last year handing what could be a major setback to President Bush’s campaign efforts. In April the State Department issued a report claiming that 307 people died in 2003 from terrorist attacks. At the time Deputy Secretary of State Richard Armitage said the report provided “clear evidence that we are prevailing in the fight.” But yesterday Secretary of State Gen. Colin Powell acknowledged the report was wrong. In fact the actual number of deaths was 625, more than twice as high as in the original report. 2003 saw the largest number of attacks in 2 decades. A spokesperson for John Kerry said “The White House has clearly tried to blur the lines between 9/11 and Iraq, exaggerated the threat of [weapons of mass destruction], and has now been caught trying to inflate its success on terrorism,”