You cannot make up terms that don't exist in your contract. If your contract says 1% daily then that's what you have to state. It's more common for interest to be calculated in APR (annual percentage) which is likely why the court forms are asking for that but just cross out the words of the form that say annual interest and change it to daily interest. You probably have to submit the contract with court documents anyway so the clerk will see why you have done that.

Small Claim is pretty relaxed because it designed for people with no legal background. Just make sure every statement you make is credible and the easiest way to do that is with paperwork verifying your statements.