Hi Peter
Ok I see why we are NOT on the same page. This is kinda like a split measure. The first half of the measure comprises of the inside roll. Simply three notes in a row.
The second half of the measure comprises of 2 pick up notes which lead you from the G7 chord into the C Chord in measure 9. Everything in the red box is considered to be the C chord including the 2 pick up notes which are actually in G. But don’t let that confuse you. Just think of them as steps that lead you to the next room.
Now I see why you may be struggling with this. Measure 9 starts with a C melody note on the second string. picked with the Index Finger but measure 8 ends on a B note also picked with an Index Finger. That may well feel awkward but not impossible. In Bluegrass it is said you shouldn’t pick with the same finger twice. That’s a myth, as you gain experience you’ll figure out how. Except perhaps on a really fast tune, But this is not a fast tune and it’s definitely not bluegrass.
Because it is such a slow tune you should have ample time to pick the string twice. Personally I would pick the melody note starting measure 9 with my thumb followed by the first string played with the middle finger.
It would also be fine to leave out the B note at the end of measure 8 it’s really a fill note and is intended to guide the listeners ear to what follows.
One final point, The last note on the inside roll is picked with the THUMB that quarter note gives you ample time to pick the next note (the pickup note) also with the THUMB
My advice would be to play around with the picking pattern here. Maybe @BanjoBen can offer up an alternate suggestion.
Sometimes you just got to figure stuff out on your own. All of @BanjoBen 's lessons are well written, all the detail you need is there in front of you. If you are unsure pause and rewind the video as many times as you need most times that helps. I do it all the time