The list of worn, hand-held, or hidden refers to if the item is actively being worn at the time you use a verb, if it is currently in your hand when you use a verb, or if you are hidden when you use the verb. So, for example, you could have a belt that has an EZ Script response to the verb POKE, which would work regardless as to whether the belt is worn or in your hand. However you could not use POKE while you are hiding (because POKE will actually remove you from hiding). Meanwhile, you can have PINCH on that same belt and it'd give an EZ Script message if you are wearing the belt, holding the belt, or even something fancy if you are hidden when you POKE it. (The third person could be something like, "You catch a glimmer of something shiny in the shadows." while the first person messaging may be, "You fiddle with the metal buckle on your belt.")

- EK

>You now regard Eorgina with a warm demeanor.

The item can be wearable, but at the time you use the verb in the middle column, the wearable item should be in hand. Or, in the case of a verb that works for both when the item is worn and in hand (listed in both columns one and two), then you can use that verb on the wearable item in either state - worn or in hand. A GM or another more knowledgeable about EZ Scripts can correct me here, but I believe that also in that same scenario (wearable item, verb listed for columns one and two) you may be able to use different messages written dependant on if the item is worn or in hand when you use that verb.
Example:
You pull your belt a little tighter, cinching it around your waist.
You pull your belt between your hands, then fold it in half.

- EK

>You now regard Eorgina with a warm demeanor.