Hello Dawn,
Thank you for your question. Your questions highlights the flexibility of the use of grade one indicators within the UEB code. In this situation both transcriptions are correct. You can use the grade one indicator on single letters or place the grade one passage indicator before the entire second transcription.
Based on my personal preference, I would use the format with the grade one indicator on the x. Since the second version per the formatting guidelines doesn’t use contractions, the grade one passage indicator is not needed. My rationale here is that the two cells used by the grade one indicator are the same as used for the other stressed syllable marks.
Mike