2 color i cord edge - how to put back on needles?

Hello! I am knitting Stephen West’s Safety Scarf which has a lovely two color i cord edge in section 1. I went too many rows for this section and had to unravel a couple, now I cannot figure out how to put this back on my needles. Stupidly I took them off thinking it was faster. This is the pattern section:

Row 5 (RS): Using CC, k3, kfb, k to last st, sl1 wyif.
Row 6 (WS): K to last 3 sts, sl3 wyif.
Row 7 (RS): Using MC, k3, kfb, k to last st, sl1 wyif.
Row 8 (WS): K to last 3 sts, sl3 wyif.
Repeat last 4 rows 21 more times. Then work Rows 5 & 6
once more. 51 sts. Break CC.

If I’m trying to start with a ‘new color’ (as in after knitting either 5 & 6 or 7 & 8) what should my needles look like? Are those last 3 slipped stitches the other color then? I have gotten myself so confused!

Welcome!
Yes, the last 3 slipped sts from the previous row will be the other color. Every time you start a RS row, you be working with a different color, CC or MC.

Thank you! One more question-- where should my other yarn be hanging then? It’s between the 3 stitches too?

The other yarn will be hanging 3sts from the same end of the needle, that is, near the needle tip.