Perforations are the round holes and the number (for example: perforation 10) refers to how many holes there are in a given measurement. Off hand I forget the measurement but it is usually millimeters rather than inches. Perforation gauges for determining the number of holes are available at most stamp shops. The cheaper versions are not very reliable.
After I posted the info on a possible identification I recalled a 1 cent Washington that was much more common than the two possibilities I have already mentioned. This new possiblity is a Scott #542 which as used is worth $1-2 and unused is approximately $5 and up depending on condition. It is distinguishable by measuring the width and/or height of the printed area which is called a "frame". The better clear plastic perforation gauges also have measurements in increments of millimeters to check the frame size. A very helpful website is
www.1847USA.com The home page has a "WASHINGTON FRANKLIN WORKSHEETS" link. Click on "1c" under "Washington" to help you with your stamp.