The actual number of call blocked depends on a number of things. The number of calls offered in a givin amount of time, the average hold time of each call, when calls are offered etc.. The erlang formula assumes that calls are offered equally during a givin amount of time, which does not normally happen. You could have 32 lines, and all the lines could have one call on them and if no other calls are offered, then no calls will be blocked.
It has been along time since I have seen an E1, but I think it is equal to 32 lines. So here you go.
1. The traffic carried should end up a 22 erlangs at 1% blocking.
2. I think you answered your own question. The blocking would be 1% of the traffic.