You're making a hem at the bottom of the hat. The purl round is a turning row because the fabric naturally wants to fold there. Fold it in and knit 2 stitches together for each stitch. One will be from the needles and one will be from the cast on edge.
The word blending seems to be a typo.
Anyway, I've made several hemmed hats and I like the look. I have this one bookmarked to try.