Before looking at the solution, try to get the pencil out of the buttonhole without untying the string. It appears impossible to free the pencil and string. You may not cut or break the string or pencil. It is possible to remove the pencil with the string still attached.
The loop is too small for the pencil to go through. Therefore, the material around the buttonhole has to be gathered up and pushed through the loop. The pencil can then be pushed up through the buttonhole.
When you know the solution, it is possible to fix the pencil in the buttonhole with the string already attached. Just work through the solution in reverse order.
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