Okay, I understand the question now.
Worked in the round on circular needle. Cast on 74 sts on circular needle size 4 mm with off white. Insert 1 marker in the 1st st at beg of round and 1 marker in the 38th st (= side edges). Continue to work as follows: * 1 time diagram M.1A, 3 times diagram M.1B *, repeat from *-* a total of 2 times. Continue until diagram M.1A and M.1B have been worked 1 time vertically.
You have 74 stitches. You are going to work in the round making the same thing on both sides of the potholder. The first stitch is the beginning of side 1 and stitch 38 is the beginning of side 2.
The little space between the two charts that is causing you confusion is just there so they can say do chart M.1A one time and then chart M.1B three times. That will be the first 37 stitches, side 1 of the potholder--1 st for the skinny chart then the 12 stitch chart 3 times =37 stitches.
The space doesn't mean anything as far as any kind of space on the potholder, the stitches from the skinny chart will sit right next to the stitches from the snowman chart. They have the same number of rows and you will work the skinny chart then go right to the snowman chart and do it 3 times and then repeat the whole process. That is, another skinny chart and another 3 repeats of the snowman chart, that will take you all the way around the potholder and you will be making three snowmen on each side with that 1 edge row at the beginning of each side.
Side 1: 1st, then 3X12=37. Side 2: 1st, then 3X12=another 37. 37+37=74---all your stitches.
Does that clear it up?