I believe the bottom fold like is line A. The pleat lines below it would be the pleats at the front of the bag at the very bottom of the front of the bag. But if you post a picture of the bag itself, perhaps we can see if that is true. You could always set it aside for the day, and call the company tommorrow, they need to know the pattern is poorly written. If you got this at a quilt shop, often they make displays of thier bags, so they could help you as well, as they may have "been there, done that!".