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       --password-file
              This option allows you to provide a password  in  a
              file for accessing a remote rsync server. Note that
              this option is only useful when accessing  a  rsync
              server using the built in transport, not when using
              a remote shell as the transport. The file must  not
              be world readable. It should contain just the pass-
              word as a single line.

The password file option is only for a remote rsync server, not ssh.
You need to use one of the ssh methods to avoid prompting for password.

- Dave Dykstra