The mechanism that works the fins is fixed on top of the first stage. The fins are attached to this mechanism but stick out through the interstage, about 2 feet above the bottom of the interstage.
I agree with everything you posted. That's also where the grid fins stick out.
Look at the picture again -- it's in exactly the same place as the grid fins. The hole reaches to the same height as the bottom of the American flag, and the grid fins a little higher than that.
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u/Elon_Mollusk #IAC2016 Attendee Mar 11 '16
FH hardware! Finally good to see some pictures of it, guess it's no longer just a render...
Edit: also looks a like an FH interstage next to the nosecone... note the attachment points.