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I think it’s an Old English take on one or first. As the the ‘first’ SFG/UDT.
1TH is the same as 1ST only it wouldn’t be confused with 1ST SFG(A).
When was the very first SF Underwater Dive Team authorized? Might be a clue to the origins of the knife which looks remarkably well. I don’t think any letters or inscription is missing. I’d also look at type face from the period and see why the larger space between SF G / UD T because it’s not a whole space but something the typewriter key set did. Looks “Times Roman” but not sure.
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