Help Please

Oh Wise Ones!

I'm hoping someone can help me understand a pattern, please. Page 88 of Victorian Lace Today.

It tells you to cast on 36 stitches but at the end of the first row you'll have 37 stitches as there is one more YO than K2tog.

Row 2 doesn't change the stitch count. There are as many YOs as K2togs, but there are only instructions for 35 stitches. I've tried it 3 times but each time I find I have 2 stitches over at the end of row 2.

What am I doing wrong?

Any help from you master lace knitters would be much appreciated.