That answer took longer to work out. I wanted an easy start so I answered the second pattern question first. 
Stitches will line up in columns. Knits look like V and Purls look like humps ^.
But the back of a knit looks like a purl and the back of a purl looks like a knit.
I have tried to dot the arches of the purls (which indicates the stitch was knit on the other side, or previous row).
We want the site to line up in columns.
Circled are areas where the yarn is too shaggy to read in the image. But are likely increases.
To fix an unintended increase just slip stitches to the left out to the right until the needles meet over the troubled column, then ladder down to the mistake and fix it. (See video)
Ladder down video:
Fixing border or edge stitches: