
They are allowed to start their second attempt at 2. The student gets distracted, and so actually does not submit (using the overdue handling) until 1:30pm.

The quiz has a one-hour time-limit, and a 1 hour delay between attempts. Note: You can change quiz availability and duration for different groups or users in the Group or User override sections in quiz administration. If you do specify a time limit, several things are done to try and ensure that quizzes are completed within that time: Time limit By default, quizzes do not have a time limit, which allows students as much time as they need to complete the quiz. What exactly they will see depends on the settings you choose for review options (see below). Even after the quiz has closed students will still be able to see the quiz description and review their attempts. Answers that the student submits after the quiz closing date will be saved but they will not be marked. Close the quiz After the closing time, the students will not be able to start new attempts. Quizzes with start times in the future display both the open and close date for students. They will be able to view the quiz introduction but will not be able to view the questions. Before the opening time the quiz will be unavailable to students. Open the quiz You can specify times when the quiz is accessible for people to make attempts.

The actual timing for the quiz is not changed by that. Note: The user's time-zone - as set in the user profile - only affects how a particular time is displayed to that user.
