28.2(a) -- A string when drawn taut should pass each mark on the required side and in the correct order

Would Yellow's string be closer to the mark or Green's when passing the mark on the required side? The answer is Green, at this mark she is the inside boat.

You've got them both gybing a little before they enter the zone and I don't think that's quite right. Yellow would not be obligated to gybe or otherwise avoid green until they were in the zone with overlap. If they can stay out of the zone, yellow can control the gybe back to the mark (as long as she remains on her proper course as the overtaking boat) on the layline and if she can break overlap before/as they enter the zone, yellow does not owe green room. While I'm certainly fallible, pretty confident I have that one right but correct me if wrong.

Supposing they are overlapped entering the zone, both on starboard, you are saying that yellow needs to anticipate green's gybe to port because green is currently the inside boat and yellow should gybe away before reaching the layline to allow green to be inside and have room at the mark - am I interpreting your statement correctly? BTW, I agree with this is how the rules SHOULD be structured in this situation (re; my earlier comment about yellow driving green into oncoming traffic at a gate)

However, I do believe that the word "inside" is very poorly used in this context in this rule with these gybing angles. Green isn't technically "inside" (between yellow and the mark) at the time that Yellow is required to make a maneuver because green is "inside".