Clarence border

I have just joined the Kal, and I'm knitting the scarf with Clarence border p.88. I just finished row 40, so there are two more repeats to go. But I'm already wondering.. After the first border, the instructions say "1) knit, wrapping yarn 2 times around needle 1) knit, dropping extra wrap" - does it mean I should make yo and then just drop it on the next row as in the instructions?