It looks like it wants you to knit the front and back as two separate pieces. The remaining neck stitches are placed on a holder so they can be ready to use to knit up the neck (so you don't have to pick up and knit) but won't unravel. Yes, I would break the yarn, then start fresh for the other side.
Btw, it's not a stupid question. Knitting and crochet patterns tend to be a little mysterious in how they present the information. Most of them are made so that you don't have to read through an entire book to knit up a scarf, so certain things are left out, being assumed that people will know what to do. As you get more experience with knitting, this won't be a problem for you, really, because you'll learn how things are worked.