Teddy's solution \( x > 120 \) indicates that James needs to serve more than 120 customers this week to meet his goal of earning more than $1,000.
Therefore, the correct interpretation in the context of the problem is:
James needs to serve more than 120 customers this week to meet his goal.
This means that if James serves exactly 120 customers, he will not quite reach his goal, so he needs to serve at least 121 customers or more to earn more than $1,000.