$0.74\overline{12}$ means $0.74121212...$

After the first 2 digits ($7, 4$), the block "$12$" repeats every 2 digits.

Digit 323: position after the first 2 digits $= 323 - 2 = 321$.

$321 \div 2 = 160 \text{ remainder } 1$

Remainder 1 → 1st digit of "$12$" → $\mathbf{1}$