Pattern Help

I am knitting the Quaker ribbed hat and I need a little help with the pattern . I need a brief explanation of the following:

Now work in stockinette st, ( knit each round) for 5 inches, or about 7½ inches from beg (I am ok at this point)
Now I need help are they saying for me to just K2tog maybe at the Beg and In the Middle of the round so I have 2 less stitches in total on the last round., decreasing 2 sts. evenly spaced last round worked. (74 sts.) (there should be 4 purl ridges )
Top decrease: * Knit 2 tog, knit 5 * repeating between *'s around, ending knit 4 (64 sts.).

Yes, the first decrease is two as you described, probably to bring it down to where the next decreases will fit evenly.

Thanks I thought I was doing the right thing