Yes, that could be confusing! The overall feel and rhythm of the verse has accents grouped into two measures or 8 quarter notes as follows; 12312312 accents on 1. However, there is an underlying 16th note feel which could be felt like 1234561234561234 with accents still on 1.
With the rests you are striking the the strings 10 times per rhythm cycle (2measures). You have the right idea to use your ears primarily. Sometimes the mind can get in there and muck things up. Other times it is very helpful! I hope this helps!


Good luck, Tom~