The part underlined is incorrect as I see it. The attack that required LoF was the on from the ML and K-9. In order for the DD to "smoke dodge", that LoF needs to be blocked (again, this is the point of contention, but this is my understanding from the text of the rules). If the DD throws smoke to simply block LoF from himself to the ML, then it's a normal roll. With your example dice rolls, the smoke gets laid and the DD makes one save (total immunity).