The straight edge of the wing is the leading edge. Wing #1 is the main wing with the ailerons. The other paper that you have labeled #2 is actually both the top and bottom kfm airfoil. Where the dashed lines are, you will remove the paper from your foam board. This will be wrapped around the leading edge of wing #1. I would start with the solid piece that goes on the bottom and glue it into place. Then, I would fold up the airfoil on the leading edge of wing #1 and glue down the two top sections. The space in the center is where the fuse will sit when you mount the wing into it.
So just to be clear, the dashed part will have the paper removed from the inner edge only. Leave the paper on it for the outer edge. The solid piece will go to the bottom, and the split piece will go to the top.
I'm trying to find the time to build this plane myself and put it on video. Time is just a little hard to come by here lately.