At this point you're dividing the piece into two sections for the shoulders.
You'll knit 4, bind off 5, knit the final 3 stitches. (there will be one left from the bind off so you'll have 4 stitches on each side)
For row 39, purl the first 4 stitches on the needle.
You'll probably work these 4 stitches until completion, then cut the yarn and work the other 4.