Yes. The cousin is the son of the father who is the uncle of Pepe, not the uncle of the son who is the cousin of Pepe, though he is probably the uncle to other sons who are other cousins of Pepe, but in this case that is not the case. The uncle is the father of the son who is the cousin, so the question now becomes whether the uncle, who is the father of the son who is the cousin, is the brother of the father of Pepe, or if the uncle, who is the father of the son who is the cousin, is the brother of the mother of Pepe. Or perhaps the uncle, who is the father of the son who is the cousin, is the husband of the sister of the father of Pepe, or the husband of the sister of the mother of Pepe, whose cousin is the son of the father who is the uncle and I am my own grandpa(ma?).
(...I just couldn't resist.)