The gauge of the pattern is 4 stitches per inch, regardless of what the yarn band may say.
The reason a pattern gives a gauge is so your mittens, in this case, will turn out to be the same size as you'd expect.
If the pattern's gauge is 4 stitches per inch, and you cast on 46 stitches, that turns out to be 11.5 inches, right? If you have 3 stitches per inch, and you cast on 46 stitches, you measurement will be 15.3 inches or so.
With the yarn you chose, however, you probably can get a gauge of 4 stitches per inch. Do a swatch with the 11 needles and see what gauge you get. If you get too many stitches per inch, go down a needle size. Too few, go up a needle size.