Final answer:
In Act 1 of Othello, Othello admires Iago's perceived loyalty and honesty, often referring to him as 'honest Iago' and heavily relying on his advice.
Step-by-step explanation:
In Act 1 of Othello, Othello's impression of Iago is that he admires Iago for his perceived loyalty and honesty. This is evident through Othello’s various interactions with Iago, where he often refers to him as 'honest Iago' and places a significant amount of trust in his counsel. Othello’s regard for Iago is rooted in Iago's cunning ability to appear trustworthy and loyal while actually orchestrating deceit and betrayal behind the scenes.