Need help with pattern directions...

[ladybug_ja]

HELP! I thought I had figured out what I was supposed to do with these instructions but when I knit it up...it's definitely wrong! It just looks like random holes, there is definitely no V-pattern.

I've attached a scan of the portion of the pattern i'm having problems with. This portion should make the V-pattern in the top portion of the hat.

Where it says..."yfwd, s1, k1, psso" in Row 1, Do I..
a) put the yfwd, sl1, then put the yarn back to do the knit or
b) put the yfwd, sl1, keep the yarn forward, and then do the k1 (and thus inc 1 this way)?

Doing it the second way seems to make it awfully jumbly and hard to manoever. But I did it the first way and it doesn't look like it's supposed to at all.

If I do it the second way, how do I do the psso? Does it go over 2 stitches?

I guess whatever I do with Row 1, I would also do with Rows 3 and 5 too.

Thanks for any help you can give!

Julie