Here's what you do:
cast on 4 stitches
next row: knit two, yarn over, knit two
next row: knit two, yarn over, knit remaining stitches
Note: to make the hole appear, knit in the back of the yarn over stitch.
Keep doing this until you have 46 stitches on the needle:
next row: knit one, knit two together, yarn over, knit two together, knit remaining stitches.
Keep doing this until you have 4 stitches remaining.
Bind off the 4 stitches.
Simple pattern. It will become even easier once you have made a few dishcloths. Good luck.