Short rows are just knitting some of the sts instead of all the sts in a round or row. There's a video for them on the Advanced Techniques page and there's an article
with pictures that explains wrap and turn. That should help you figure it out.
Row 1 of Chart A you would k1, w&turn, leaving the other sts alone, then purl back on the next row. Row 3 you k2 p2, w&t and rib across the sts on the next row. I'm not great with a charth though and have never seen one that has w&t on it, so I could be off. But just start it and see how it goes.
Here's another pattern
that you might see if it'll work okay, you can do it in k2 p2 ribbing. It starts with the flaps, so you don't have to incorporate them into the hat by short rows.