In theory it means the point a quarter of the way up the cumulative distribution. In practice there are various definitions used, particularly in statistical computing. For example in R there are nine different definitions, the first three for a discrete interpretation and the rest for a variety of continuous interpolations. Wikipedia has a tenth.
R types 1, 2, 3 and 5 give $3$ as the first quartile, as you calculated, and if you want to regard this observation as a discrete population that is indeed the obvious answer. The other interpolations range from $2$ to $4$.
Your figure of $1.75$ looks wrong and it is unclear how you calculated it: if it supposed to be a weighted average of $1$ and $3$ then perhaps you were trying to get $1 \times \frac14 + 3 \times \frac34 = 2.5$, which is what R type 6 would produce. Or perhaps you were trying something else.