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In If the target namespace is http://www.w3.org/2005/xpath-functions *or* then the schemas described in Section C.2 Schema for the result of fn:json-to-xml FO31 and Section 5.6.5 fn:analyze-string FO31 are imported. delete the (highlighted) word "or", and change the reference to sections C1 and C2 of FO31. The current text is a relict of when there were two namespaces listed.
Re-reading the affected paragraph, I think readers could easily assume that the whole paragraph is about the schema for the fn namespace. I suggest splitting it into two: The first URILiteral in a schema import specifies the target namespace of the schema to be imported. The URILiterals that follow the at keyword are optional location hints, and can be interpreted or disregarded in an implementation-dependent way. Multiple location hints might be used to indicate more than one possible place to look for the schema or multiple physical resources to be assembled to form the schema. If the target namespace is http://www.w3.org/2005/xpath-functions then the schema described in Appendix C [of F+O] is imported; any location hints are ignored.