Your gut is correct. In formation, directions are telling the student to do something with the material that follows. These should be blocked in cell 5. The paragraph "directions" are something like "Look around your classroom and find five things that start with the letter D". This statement is then followed by a heading or something completely new and unrelated.
As a sidenote...is you are doing a math book (which this looks like) even if it is in UEB, BANA recommends following the Nemeth format rules...so the first example (with the dollar signs) is a directive sentence and the 2nd example is direction which would be in 5-3.