Just a theory
I am not ME nor do I have to plan Isolated (or as we call it) Island reserves.
Reading backwards, from point of arrival:
3.1
3.2
3.3
All burnt off, the cont fuel avoiding weather for example.
Cruise fuel for the two hours at normal cruise level calculated on:
Entering the hold @ destination, at ZFW + the weight of reserve fuel (-alternate) used to calculate backwards the burn at 2 hrs @ Cruise level.