Knit into the stitch below

I am knitting a sweater that has a fisherman’s rib. It calls for knit into the stitch below the next stitch. I understand the concept and that the next stitch comes off the needle. The problem is that the preceding row has knit 2 together. When I knit into the stitch below I lost a stitch.
Is it correct that you knit into the stitch below and just drop the stitch above?

Here’s an explanation with pictures.