Category 1 may not be as devastating as a category 5, however it is still a powerful storm. This classification entails 74-95 miles/hour wind which is more than enough to pick up debree and cause damage wherever the storm goes. People should watch out for this coming storm and need to protect themselves by remaining indoors.
I think any time there is a storm at any magnitude there could be damage. It might not be severe as other stronger hurricanes, but still could cause wind damage, flooding. There might not be tons of damage but I do think something will get affected. You never know what any strom is capable of.
Yes, damage from Hurricane Arthur is possible, even though it is only a Category 1 storm, because anything can happen in a storm. Even one misplaced flash of lighting can start a fire that can cause a lot of damage. A weak branch can fall, even under light winds, and can hurt or kill someone.
I live in the Gulf Coast area of Texas and I can say from experience that category 1 storms can be very, very damaging. I have seen massive flooding from storms that didn't even qualify to be "category 1" but were merely "tropical depressions." Also, it does not take winds from a category 5 storms to uproot trees and cause severe wind damages. I have seen trees uprooted by category 1 storms.