If this is your firt time knitting a lace pattern, you might be confused by the YOs. They're just wrapping a stitch around the needle, then do the next st given in the pattern, and it's also easy to forget one, or do too many or do the same with the decs.
The lace panel is 9 sts, so for row 1 - *P2. Work 1st row Lace Panel. (P2. K2tog. yo. P2. yo. Sl1. K1. psso) twice. P2. K2tog. yo. Rep from * to last 13 sts. P2. Work 1st row Lace Panel. P2.
you would p2, the the repeat begins - work 9 sts of the lace pattern, p2, k2tog, yo, p2, yo, skp, p2, k2tog, yo, p2 yo skp, p2 k2tog yo. Then do that all from the 9 sts of the lace panel again and again until you have 13 sts left. Then p2, the lace panel once more, and end with p2.