As a knitted version of my Keila top, Carrie has a knit yoke with eyelet stitches, and a simple picot edging around the yoke, as shoulder straps and for hem edging - another quick-to-finish yet so pretty summer top. :)
To make it more clear about row 1 of P1 in the chart:
When you work row 1 of P1, you slip 1 as if to knit, k 2, pass slipped st over the last 2 sts completed, now you have 2 sts left out of the 3 sts, but when you work yo on the next row, you have 3 sts again in P1.
Read more about Carrie and the ideas behind it here.