When you talk about SPI bit rate, is that the upload, data transfer speed to and from the chip?
The terms "target" and "programmer" are often used. The "target" is the processor being reprogrammed.
Yes. By "bit rate" I mean the transfer speed between the programmer and the target.
How many bits it can process per second.........1Mhz?
The maximum bit rate to the target is the target's processor speed / 6.
If the target is fresh from the factory it is running at 1MHz so 1MHz / 6 = 166666. The next lower closer bit rate is usually 125K bits per second so that is the usual choice.
If the target has been reconfigured to run at 8MHz the maximum bit rate is 8MHz / 6 = 1333333. The next lower closer bit rate is usually 1M bits per second.
I believe there is also a second limiter independent of the target's clock that keeps the maximum bit rate at 2M. If you need the details check the datasheet (serial programming section).
I know very little about these chips and the terminology. Sorry for stupid questions.
Knowing very little hardly makes your questions stupid. No one is born knowing how to serial program an AVR processor.