It could be that it's just missing the initial * but as written, I agree, it's confusing. It may be:
Rnds 1 and 2: *(K4, P1), twice; repeat from * around.
Rnd 3: *(C4F, P1), twice; repeat from * around.
The use of "twice" may have something to do with later directions. As far as not looking like the ribbing on the hat, can you post a link to the pattern or to a picture of the hat? What does the ribbing look like? This pattern will give you almost side-by-side cables in the ribbing.