I soaked it, and laundered the blanket and it looks, feels and smells wonderful. I realized that I had actually knit the perfect gift for a teachers baby, an alphabet blanket :-) The 100% cotton yarn is so easy to care for and it has a lovely weight and drape to the Blanket, ooh I don't want to part with it now, but I know it will be cherished in its new home.
I darned the partly dropped stitch. I took a few strands of the yarn and "caught" the few strands of the dropped stitch, with the new strands ~ almost, in an embroidered fashion, mimicking the stitch and it is now hardly noticeable. No more noticeable, than, when darning in loose ends.
I thought I should mention if you do decide to knit this pattern that there is an errata on Debbie Bliss website. Please check it out before knitting this blanket. As you can see knitted the lace border on the top and bottom of the blanket and I am happy with the way it turned out.