Don't understand this pattern at all

I’m trying to knit a baby blanket out of RedHeart’s book, Knitting Made Easy. The pattern says:

BLANKET-First Half: cast on 3 sts
Next Row: Knit. Now work in pattern as follows.
Rows 1 (Right Side): Inc in first st, K to last 2 sts, inc in next st, K1 - 2 sts increased.

I have cast on and knit the 3 sts. I also understand to inc on the first st, so now there are two sts on my left needle, and two on my right. After that, I’m completely lost. Does it mean to knit until I have two sts left? Because then I wouldn’t knit anything, because I already only have 2 sts left. Or does it mean to knit the last 2? Which makes the next instruction confusing. If I knit those last 2, then which st am I supposed to be increasing? And I don’t understand the last part of the instruction at all. Oh, and why does it say “Rows 1” instead of “Row 1”? Is there more than one Row 1?

And if it helps to know, the pattern is worked diagonally, from one corner of the blanket getting wider, then getting smaller to the opposite corner.

Welcome!
OK, you’ve increased in the first stitch and you have 2sts on the left needle. Now increase in the next stitch and knit the last stitch. You’ll have 5sts on the needle and you’ll be ready for the next row directions. The pattern specifies that they want a knit front and back (kfb) used as the increase.
Not sure why it says “Rows” but maybe a misprint.
http://www.redheart.com/books/knitting-made-easy
page 31 in the download seems to be the pattern.

It says to purl row 2, and then row 3 gives me the same instructions. So I would inc the first st, then knit sts 2 and 3, inc st 4, and knit st 5? Is that right? So I end up with 7 sts on my needle at the end of row 3?

I’m not sure I follow what you wrote, I’m not good at it, but you will increase in the first stitch and in the next to the last stitch on increase rows. Each increase row adds two stitches. HTH

ETA I found a video. https://www.youtube.com/watch?v=Vtr_zdlI-2g It’s not exactly the same as what you’re doing but very similar and should help you get the idea.

Thank you so much, I understand that. Why couldn’t they just say that in the pattern? Lol

You’ve got it. That’s the wonderfulness of patterns. Post a photo if you’d like. We’d love to see the finished blanket.