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I've traced the guidance starting with DOD 51.12-M down to PGI 204.7105 Contract exhibits and attachments (c)(3)(i). I fail to understand the instructions provided by the provide example on a "(i) Two-position serial number for double letter exhibit identifier."
Answer
To understand what is meant by, “two-position serial number for double letter exhibit identifier”, it’s necessary to go back up to DFARS PGI 204.7105(b) to determine how to number (identify) the exhibit itself.

To determine the correct input for the Contract Data Requirement List (CDRL) DD Form 1423-1, block 1 (Data Item No.), you use a multi-step process.

1) Look to DFARS PGI 204.7105(b) to determine how to label block B (EXHIBIT). DFARS PGI 204.7105(b)(1) directs you to label the exhibits with either a single or double alpha character as your letter exhibit identifier. So you would either label it as exhibit A or AA for example.
2) If you have determined to use a double alpha character in block B (say AA) then you will follow the guidance in DFARS 204.7105(c)(3)(i) - for when you use a two position exhibit identifier. Your first Data Item No. would then be AA01 and incrementally proceed to AA09, then from AA0A thru AA0Z (this is a total of 33 Data Line No.s).
3) If you have determined to use a single alpha character in block B (say A) then you will follow the guidance in DFARS 204.7105(c)(3)(ii) for when you use a single position exhibit identifier (sorry, there’s a typo in the DFARS which says 01 thru 009). However, your first Data Item No. would then be A001 and incrementally proceed to A009, then from A00A thru A00Z (this is a total of 33 Data Line No.s also).

It’s highly recommended that you also check with your command and local policy offices to see if they have additional guidance on the generation of the data included in block 1 of the DD Form 1423.

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