I think you're knitting flat, not in the round? Your photo looks as if you're doing seed stitch, to me at least. If you check the videos here
you can scroll down to Stitch Patterns and find the videos for Ribbing and Seed Stitch. I'd link to them directly but the videos here are available in Continental or English style and I don't know which you use. I think what has happened is you knitted where you should have purled and vice versa. The videos should help you get it figured out. Are you using the Bev's Country Cottage pattern?