beg. book lesson 1.4 and newsletter #3

I do not understand how to do exercise 1 in the newsletter #3. Also, in the example for exercise 2 it says "usted" is "You (polite, plural). I thought "usted" would be "You (polite, singular)?

I don't have any of that material at hand, but if indeed it says that usted is "you (polite plural)," it's incorrect. Ustedes is you (polite plural). You're right that usted is you (polite singular).