The pattern is reversed, so the design will appear the right way around on the front side of your cloth.
The diagram shows the reverse side of the pattern only (the uneven rows). It starts with the cast on row and end with the bind off row. You read it as you knit - from right to left. The stitches (dark part) are the knit stitches on the reverse side of the cloth. These are the stitches that show up as ‘bumps’ (purl stitches) on the front side and form the final pattern.
All even rows (= the front side of the cloth) are plain knit all the way through.

Also avialable:

Rings a la Olympic Dishcloth (free)
Summer Olympics Sports