thank you for responding to my question.
I do know that the lace pattern is the modified lace rib pattern.
I do not know how to fit all 4 rows of the lace pattern into the main pattern.
Do I cast on 38, K3 and do first row of lace pattern.
Next row: Slip one wyif, K2. [B]then knit row 2 [/B]of modified lace pattern?
I worked the 4 rows of your pattern over the 38 stitches and think I know why you are confused. It is a little awkwardly written. What they are doing is making a 3 stitch garter border on each side with the 4 rows of modified lace rib worked ONLY over the 32 stitches in the middle. It might help you to place a stitch marker after the first 3 of the 38 and before the last 3 of the 38.
Keep the 3 stitches on the far ends in garter (knit them all the time, except the for the very first stitch [after row one] which you always slip wyif). So each row (after the very first row 1) you would work over the 38 stitches as follows: Sl 1 wyif, K2,(have a marker here) then work whatever row of the lace rib pattern you are on (its row’s directions will fit inside the markers), then when you get to the marker at the end you knit the last 3.
The way it is written is a little confusing but on the very first row the way it is written what you have to do is K3 then do the lace pattern. But when the lace pattern part says “repeat from * to end, K2”, it means all of that fits before the 3 marked off stitches at the end. So you repeat the lace pattern, ending the lace pattern part (inside the markers)with k2, then you knit the 3 past the marker. So you really end with 5 knits in a row on that first row.
I hope I haven’t made you more confused than you were. If you place a marker 3 stitches in from each edge and remember that all the lace part of the directions will fit between the markers, and keep the 3 edge stitches in garter (the slipped first stitch counts as one of those 3 garter stitches) you’ll get it. I hope this helps. Merigold