Wolverine Brass 85002 O Ring Replacement

I have a Wolverine Brass 85002 that has a slight "seepage" at the top and bottom of the spout pivot area. I have the diagram for the faucet and I'm trying to figure out how the "kitchen cap nut" number 4 in the diagram is removed. I have the handle off and it looks like it would unscrew but don't want to risk damaging the faucet. Anyone have experience with this?

Thanks,

Rich

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