I'm not sure of the explanation however here is a try
For machine 70% of the delay slots are utilized so only 30% actually causes stalls. So taking stalls caused in machine 1 as
1(stage in which address is resolved -1 )*0.30≐.30 stalls/instruction.
Now avg stall created is
0.30*.20*.35≐0.021
therefore cpi≐1.021
For machine 2
avg stall created ≐ 2*.20*.35≐0.14
therefor cpi≐1.14
Hope it helps..:)