Pattern says cut through knitting!!!!!

I’m knitting a pony toy and too scared to continue! I’ve knitted using 3 separate yarns including one scrap yarn and cast off, next step is to cut through the scrap knit.
Please see pics of pattern and garment. Scrap section is highlighted by my pen. Uploading… Uploading… Uploading…
Many thanks

Welcome to the forum!
Your photo or pattern didn’t upload. Please don’t post the entire pattern, just a few lines are ok and a link to the pattern site or photo is fine. Large portions of patterns can give us copyright problems.
What is the name of your pattern?

Yes, cutting the knitting or snipping the first stitch and then picking out the row is what you need to do. This will free up live stitches. It’s similar to this

Is your scrap yarn a different color from the main yarn? You could practice this on a swatch so that you see what is involved. Basically you insert a dpn as you tease out the scrap yarn.