row 1 K1 *p3 [color=red]k1[/color] p3 k11 rep twice p3 k1 p3 k1
row 2 k1 *k3 [color=red]1 seed st[/color] k3 p11 rep twice more k3 1 seed st k3 k1
When they say one seed stitch, they want you to do the opposite of what the stitch is as it's facing your.
In row one that stitch is a knit. When you flip it over, it will look like a purl, so you'll knit that stitch again.
When they give the instructions later on for X number of seed stitches, just knit the opposite of what it looks like on the stitch below--knit the purls and purl the knits.