I'm sorry to hear you've run into this, I apologize that we
didn't have a documentation ready for you that would address this,
we're in the process of doing a major overhaul of our documentation
to improve it.
Does your Mac have all of your current logins or would you loose
anything if you just reinstalled 1Password on your iPhone and then
synced all your data across again?
To reset the password the best way to do it is to uninstall the
1Password app from your iPhone and reinstall it again. Heres what
you need to do:
On your iPhone home screen hold your finger down on the app
icon until all of your apps start jiggling.
Click on the ( X ) button on 1Password and confirm that you'd
like to delete it.
Go to the App Store on your iPhone and go to the Purchases
Find 1Password and click on the Install button.
Now setup 1Password the way you had it previously with the
correct password and you should be back in action!
Let me know if that worked for you or you ran into trouble and
we'll work from there!