Wow!! Dang that's bout as clear as mud!!! hmmmm... it doesn't say turn or anything in parentheses or stuff with asterisks or anything like that in the row? Do you have a link to the pattern itself?? You would think that you would continue in stockinette stitch for the rest of the round and then repeat the last two rounds til you have the required amount of stitches left.
Well, with a k2tog at the end of needle 1, I would think you're going to mirror that on on needle 3. BTW, it didn't say to knit until the end of needle 1, did it, so they figured they didn't need to say knit across needle 3....
When you are doing the gusset it should say on #1 needle knit to the last three stitches then knit two together and knit one. #2 needle knit across #3 needle knit one then ssk knit the rest of the stitches. Then knit the next round. You alternate each of these two rows until you get to the 48 stitches stated.
I hope this will help you.