Triangle ABC is isosceles with AB = BC. We are given that $\angle B = 68^\circ$. Since the sum of the angles in a triangle is $180^\circ$, and the base angles of an isosceles triangle are equal, we have:
$2\angle C + \angle B = 180^\circ$
$2\angle C + 68^\circ = 180^\circ$
$2\angle C = 180^\circ - 68^\circ$
$2\angle C = 112^\circ$
$\angle C = \frac{112^\circ}{2}$
$\angle C = 56^\circ$
Step 2: Find the measure of $\angle D$
Since $\triangle ABC \cong \triangle EFD$, corresponding angles are congruent. Therefore, $\angle C \cong \angle D$. Thus, $\angle D = 56^\circ$.
Step 3: Find the measure of $\angle 1$
$\angle 1$ is an exterior angle of $\triangle DEF$. The measure of an exterior angle of a triangle is equal to the sum of the measures of the two nonadjacent interior angles. Therefore,
$\angle 1 = \angle D + \angle F$
Since we don't have the measure of $\angle F$, we use the fact that $\triangle ABC \cong \triangle EFD$. Thus, $\angle A \cong \angle E$ and $\angle B \cong \angle F$. We know that $\angle B = 68^\circ$, so $\angle F = 68^\circ$.
Now, we have:
$\angle 1 = \angle D + \angle F$
$\angle 1 = 56^\circ + 68^\circ$
$\angle 1 = 124^\circ$