Memory Representation

Step 1: Understand the given expression.
The given expression means the memory has 128 words, each of 8 bits. This is a typical representation of memory capacity where the first number refers to the number of words and the second number represents the bit-width of each word.

Step 2: Conclusion.
Thus, the correct interpretation is that the memory has 128 words, each 8 bits wide. The correct answer is option (1).