We can see in the picture that the length of the pencil starts from 1 cm and measures till 6 cm. Ideally it should have started from 'zero'. So 1 cm should be subtracted from 6 cm.
Length of pencil measured on the given scale = 6 - 1 = 5 cm
Given that the scale is defective, and measures 1 cm, in place of 2 cm.
So, the real length of the pencil = 5 x 2 = 10 cm.