Right - the smaller hole is where you feed the line down into that larger hole. You then pull enough line out of the larger hole, make a figure 8 knot then pull it back into that larger hole but the knot keeps the line from pulling out. I'll have to scrutinize your various images to see where that line may go up through the rudder head. Where is the clear talked about in the directions to clear that line off?Here are the holes - a larger horizontal one and a small vertical one leading to bigger hole.
dj