1% reduced-fat cottage cheese

It seems that your second guess is correct. Have a look at what I've found on a food-related website:
Cottage cheese: The traditional "dieter's delight," and certainly a healthful food in its low-fat form, cottage cheese exhibits the first stage of all cheesemaking: the separation of milk or cream into curds and whey. To make cottage cheese, the curds are drained and sometimes pressed to form a soft, white, spoonable cheese. You'll find creamed cottage cheese (which has small curds and added cream), reduced-fat (2%) cottage cheese, low-fat (1%) cottage cheese, and dry curd cottage cheese. As with milk, however, the percentage of fat is a percentage by weight and does not give an accurate picture of the percentage of calories from fat. For example, creamed cottage cheese derives 39% of its calories from fat (as opposed to 4% to 5% fat by weight). On the other hand, low-fat (1%) cottage cheese derives 13% of its calories from fat.