Here's a picture
Okay, I think the 2 on the thread will be for the front band and when you do the other front is what this (When working second side K2 and sl these 2 sts onto a thread, then patt to the end on this row.) refers to. Just ignore that instruction for this front and remember it for the other front where you'll be starting a row with the k2 instead of ending the row with it.
So after you turn, then work the 7 sts in pattern, turn and dec a stitch at the beg and end of the row, leaving 5 sts, then turn and purl those 5 sts.