What makes sense to me is on row 4 purling back from that w&t on row 3 to work to the end. And start row 5 work to wrapped st, hide it knit 3 sts w&t.
Next it says to: work even in stockinette st across all sts, hiding remaining wraps as I go until the arm hole measures 3" from cast on.
So does that mean after row 5 there are no more w&t?
Row 6 would be to purl back to the end.
Row 7 knit and hide the w&t from row 5. Knit to end and row 8 purl back to end.
Then I would continue stockinette st till measuring 3" from cast on.
Am I getting that right?