Help please! - CFAI EOC for Reading 43

Is it just me or is question 3 (for which the answer is C) wrong? I expected the answer to be “Node 2-2 approximates the implied one yr fwd rate TWO years from now” rather than “one year from now”? I am guessing that 1.25% is the spot, then some sort of average between Node 1-1 and Node 1-2 is the actually approximation of the 1yr fwd rate 1yr from now. I may just be getting confused with semantics, but any help or clarification would really be appreciated! Thanks