Neither.
1.7 oz is approx 50 ml. Mixed to 1 Gallon of water, makes a 0.5% solution.
.85 oz is approx 25 ml. Mixed to 1 Gallon of water, makes a 0.25% solution.
etc.
Note that Permethrin is great for ticks and other crawly things - like mites. It disrupts their nervous system, and kills 'em dead. It is NOT a repellant. Unlike, say, DEET. Permethrin breaks down rapidly on the skin, and for the tiny bit absorbed thru the skin, in the liver of all mammals (though cats lack much of the essential enzyme to do so, and are much more sensitive to it than most), as well as more slowly in sunlight. Which is why humans going hunting wash their clothing in permethrin solution, rather than spraying it on themselves - they are dangerous to it!!!
There is less information (that I've seen) as to how chicken's skin might break down permethrin, but given their feathers, skin contact is expected to be de minimis.
Also, permethrin is REALLY bad for fish - don't spray it near your favorite koi pond, or empty the excess in the local stream.