At this point, I will show you "Example 2" which is a more elaborate version of "Example 1". The melody notes are treated different rhythmically with more syncopation. "Syncopation" means that notes occur rhythmically to sound unexpectedly. Within Example 2, the syncopation occurs on all the "ands" of the notes. Where the notes were once all on the beat and the thumb and fingers played together, the notes now stagger and the thumb and fingers do not play together.
This syncopation gives the illusion that more than one guitar player is playing. That's one of the tricks Chet kept up his sleeve.
Once I've played Example 2, I'll go back to Example 1 and we will break down fingerings and fingerpicking patterns.