An inverted sentence is a type of sentence in which the verb comes before the subject, which is usually a noun, instead of the subject coming first.
This simply means that the order of things are reversed, which can either be the subject, object, or verb in a sentence.
From the example given,
<u>My noble partner, you greet with present grace and great prediction.</u> this is an inverted sentence because the verb comes before the subject of the sentence.
The first one is the correct way to use it, since it separates the parts of the sentence into fragments that can still be understood without changing the meaning of the entire sentence.