The right side is the public side of garments and blankets (however, some blankets don't have a right or wrong side since both look the same). The "right side" as labeled per the pattern will be the side of the blanket that's facing you when you're knitting that row (for you, that'd be row 7). So put a safety pin or other kind of marker (tie a piece of string, for example) on that side so you'll know which side is which.
You will repeat the stitches in parentheses for the required number of times or until the end of the row, so that means you'll be doing everything before
the parens first; then you'll do the stitches in
parens again and again until you come to the last three stitches.
A YO requires you to wrap the yarn around the needle, but it does not use a stitch to make this increase. So when you get to the end of the row and you have three stitches left, that's correct. You'll wrap the yarn around the needle and then knit the last three stitches. If you need help with YOs, check out the glossary of terms
(scroll down to see a video of YOs).