If you don't hit your goals withing 1 year, the 1k goal is fine, it doesn't reset.
The watch time hours doesn't reset, but it's a rolling 365 days.
This means If you started YouTube in January, and in January you got a big lump of 1000 watch time hours, but the rest of the year was slow and you got 2500 watch time hours for the rest of the year, by time February comes around the next year, those 1000 watch time hours you made the previous January won't count.
It's not the end of the world though because you SHOULD be accumulating watch time throughout the year anyway, progressively trending upwards.
The reason I believe it's a rolling 365 days is that they want to make sure you make regular content and aren't just doing it for some quick money then leaving. It's all about a quality experience for the viewer.
And it's the viewer experience, and your channel as a package that matters. I've seen channels with thousands of subscribers and hundreds of thousands of hours of watch time never get accepted into the partner program because their channel followed no cohesive theme and it was obvious the channel wasn't created for the sake of a good viewing experience for the audience.
The audience ALWAYS comes first, remember that. That should help your watch time accumulation, and will help you get accepted into the Partner Program without any hassles.