With the exception of a few notes in bar 4, Exercise 2 will mainly be played using eighth notes.
For now, go ahead and observe the note grouping on the fourth beat of bar 12. See how there are 5 notes joined together over the duration of a single quarter note? This is a 5-note grouping, or also known as a quintuplet grouping. It may feel like you're playing slightly off time when you play these notes, but be sure to keep them evenly spaced over the quarter note's duration.
Lastly, since the notes aren't particularly fast in this exercise, pick each note with a downstroke to really accentuate each note whether palm-muted or not.
On to Exercise 3!