I wouldn't do it exactly the way it says. I don't ever,
Carefully pull the last row of knitting from the needle...
Taking the stitches off the knitting needle just makes your life harder.
You have cut the 14 inch tail. Now thread it onto a tapestry (big dull sewing needle with a big eye) needle. Now hold the knitting needle with the stitches on it in your left hand (I'm assuming you are right handed, but it would work anyway) and the threaded needle in your right hand. Run the tapestry needle into the first stitch as you would if you were going to purl, now let it come off the end of the knitting needle and onto the tapestry needle. Keep working the stitches off the knitting needle and onto the tapestry needle. When you have a few done you can pull the sewing needle up a ways and let the stitches go down to the yarn tail. Work all the stitches off of the needle and onto the tail of yarn.
When you have all the stitches secured by running the yarn through them, you pull the stitches up snug against each other. This will make the very top of the hat. Then use the rest of the tail to sew the seam up.