Puzzled over an increase

[afuna]

I am having some trouble figuring out the increase in Tony's Cashmere Scarf and Gloves (link goes to pattern on Ravelry).

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I am going back and forth, and I can't decide which interpretation to follow, or whether I should follow one interpretation half the time, and the other interpretation the other half. Any insights much welcome ♥

Also, one more thing: I'm somewhat confused by what it means to "pick up the loop beneath..." (it is entirely possible I am doing it another way *g*). Any idea if doing the M1 using the instructions from KnittingHelp.com would cause a noticeable difference from those written in the pattern?