Since OP says they have seen the solution (of which they are actually a couple that only differ in minor details), but have trouble understanding it, here's my go at explaining what's going on.
In topological puzzles, it almost always pays to think in the simplest possible terms. The exact shape of anything the rope can go around is pretty much irrelevant, so here's my depiction of the gentleman in the picture
If you can find a solution to this puzzle, you can find a solution to the original puzzle.
The easiest solution is then to
just bring the whole elastic hair band through the metal loop.
This corresponds to
bringing the whole rope loop through the waistcoat, going around any protrusions (like the head and the other arm) that don't actually prevent the rope movement) so that the rope finally falls off around the gentleman's legs
A more impressive looking solution is to
Keep one end of the elastic hair band in place, stretch the other end into the metal loop, around the pointy metal bit, and then back.
Which corresponds to
looping one end of the rope loop around the person but inside the waist coat, so that in the end the whole rope loop finally comes loose near the looped arm, which makes the trick seem just a bit more magical
The only actual difference between (all) the solutions is the hole of the waistcoat through which the rope loop finally escapes.