Help with Sarah Hatton pattern - Pen-y-Ghent

I am working on the sleeve for this pattern and after the rib rounds and knit 2 rounds in yarn A, the next round says to K1 in color C. I think it should be color B. Also Under “Next Round” is this row 1 of the sleeve chart or row 3. It is very confusing

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Welcome to KH!

This sweater looks like it’s knit bottom up.
On the sleeves, the color after the rib is likely B. The main background color is C which you should have the most of. However, depending on how much yarn you have, you can decide on the colors you like.
I don’t have the pattern but the sleeves seem to have 2 rows of B before starting the dashes. I hope that helps with the chart row number and placement of the dashes.