It says to rep from the * 3 times but you don't give an *. By my figuring it is right after the first k1 though. I have not knit the row over 81 and produced the 105, so I'm not positive there are enough stitches to do what it says, but I think so. Doing everything from the first of the row to where it says repeat produces 27 stitches. From where the * should be to where it says rep produces 26. 27+3X26=105 so I think it works.
Inserting the * the row is:
ROW 1: K1, *[p2tog, (k1,p1,k1) in next st] 3 times, k1, [(k1,p1,k1) in next st, p2tog] 3 times, k1; rep from *3 times (105 sts)
To work it, k1* then do this next bit 3 times (p2tog, then in the next stitch knit, bring the yarn to the front and purl the same stitch, put the yarn to the back and knit the stitch again [this makes 1 st become 3sts]), k1, then repeat this next bit 3 times (k1, p1, k1 into the next stitch like you did before, then p2tog), now knit 1. ** Now go back to the * and repeat that whole sequence between the * and the ** 3 more times.