In front of a healthy crowd at Mossie Park, Knight put the Division One side ahead inside three minutes.
CLICK HERE to see Steve Taylor's match gallery
Cameron Holmes doubled the advantage just seven minutes later as Carnforth came flying out of the blocks.
Prolific striker Jordan Chubb gave Division Two side Dalton a lifeline just before half-time.
But Knight settled the tie with 15 minutes left on the clock to earn Rangers the Challenge Cup trophy, which they were awarded at the full-time whistle.
* Many thanks to match referee Chelsea Hodgson and her team, everyone at Charnock Richard and photographer Steve Taylor.
Keep up-to-date with our exclusive email newsletters.
Subscribe