Hello @scott_therkalse
Thank you for contacting the Instructure Community. The short answer is if the student has 1 hour of their activity under the people tab, then they have spent an hour within the course navigating it. It is likely that they did not spend the full two hours watching the video. If it is a Studio video, there are analytics for that and it will tell you exactly how much of a video they watched. If it was simply uploaded media or even a Youtube link, there isn't too much more "in depth" analytics for that. There's also the option for viewing student analytics:
https://community.canvaslms.com/t5/Instructor-Guide/How-do-I-view-analytics-for-a-student-in-a-cours...
If you want Canvas Support or your school admins to delve into it, they have access to more resources technically speaking and may be able to help. But no, if the student has one hour under their name in the people tab, then they've spent one hour navigating the course.