I was able to find the previous errors (not finding the .h files).
Apparently, the following paths are like so:
"${KSDK_PATH}/platform/drivers/inc"
"${KSDK_PATH}/platform/osa/inc"
"${KSDK_PATH}/platform/hal/inc"
"${KSDK_PATH}/platform/system/inc"
In my project, I had to do the following:
"${PROJECT_KSDK_PATH}/platform/drivers/inc"
"${PROJECT_KSDK_PATH}/platform/osa/inc"
"${PROJECT_KSDK_PATH}/platform/hal/inc"
"${PROJECT_KSDK_PATH}/platform/system/inc"
That fixed the issues of the .h files, then I went back and removed the .h files I added to
satisfy the previous errors.
Now, I after compiling I get the following:

and on my Console, it reports this:
make: *** No rule to make target `/lib/ksdk_platform_lib/kds/K64F12/debug/libksdk_platform.a', needed by `FRDM-K64F-FatFs-KSDK.elf'. Stop.
I think it has to do with this portion of the demo step:
2.11 Go to Project -> Properties -> C/C++ Build -> Settings -> Cross ARM C++ Linker -> Miscellaneous and add the KSDK platform library binary to “Other objects”:
"${KSDK_PATH}/lib/ksdk_platform_lib/kds/K64F12/debug/libksdk_platform.a"
so, I changed it to this, since the previous seems to have done the trick:
"${PROJECT_KSDK_PATH}/lib/ksdk_platform_lib/kds/K64F12/debug/libksdk_platform.a"
Unfortunately, this did not take care of it....??? Not sure what to do now!!!