It should be a simple tweak to the CSS file by adding the following code to the paragraph tag...
text-indent: 1em;
If you post a screenshot of the code in the xhtml page, or even post the epub if it is not in copyright, we can tell you which tag to edit in the CSS file.
Though the paragraph ending with <p></p> sounds wrong. Is there a <p> tag at the start of the paragraph?
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