The row just before says, "purl all sts except 2 marked knit sts, knit those." And right after, "make 2 increases during this round. (Use m1p to make increases and try to space them out somewhat evenly.)." I'm making this: http://www.ravelry.com/patterns/library/grimms-cottage
And I'm a couple of rows away from starting the eyelet rib.
Thanks for the welcome!