I have grafted almost every kind of stitch imaginable (stockinette, garter, cables, lace, etc.). What I learned in a class from the late great Sidna Farley (anyone else remember her -- an enormous wealth of knitting information and a heart to match), was that with the two rows you are about to graft, one should be purl and the other should be knit. In your example, this means knit 167 rows and graft the 168th. When you graft them, graft the purl stitches knitwise and the knit stitches purlwise. You are likely to need to loosen and/or tighten the stitches to make them look even.
It doesn't matter whether you graft from the right side or the wrong side. If I have a provisional cast on in an edge that I am grafting to, I often leave that temporary yarn in place until I've got the graft to my liking. Sometimes I even use the provisional cast on as what I "trace" with my needle, especially with complex stitch patterns (sorry, too late in your case).
Make a small swatch with a bit of yarn to practice. Try it a few times until you are reasonably happy with the results, then go for it with your real project.