Could you edit your post to take out most of the pattern and only leave the part you're asking about? Even for a free pattern, it's against copyright regulations to repost a pattern in its entirety.
All you need is these rows - With 2.75mm needles, cast on 97 (112: 127) sts and work as follows:
Row 1 (RS) K1, yfwd, * k5, slip the 2nd, 3rd, 4th and 5th sts over the first st, yfwd; rep from * to last st, k1.
Row 2 P1, * [p1, yon, k1 tbl] all into next st, p1; rep from * to end. 81 (93: 105) sts.
Row 3 K and dec 1 st at end of row. 80 (92: 104) sts.
Rows 4, 5 and 6 K1, * p1, yon, k2tog; rep from * to last st, k1.
Row 7 K and inc 1(dec 1: dec 3) sts evenly across row. 81 (91: 101) sts.
- which is a little different than you paraphrased it. You don't have 20 sts you started with 112 sts, and lost some on row 1 and a single st on row 3.
So now you should have 92 sts and on row 7 just decrease one stitch, somewhere in the middle would be fine, and you'll have 92.