Mild steel is the least expensive. Chromoly is more expensive but the same material that engine mounts are made of in aircraft.
I like a good strong engine stand. I want that engine and prop to stay right back there where they're supposed to be, no matter how rough things get. Either of the above will work in 1" if you take care to see that there is good triangulation, and that the welds have full penetration.
I've seen stands built with as little as 1/2" tube, but to be honest I really don't like being around a boat that has an engine stand that skinny.
olf