After adding the packages, the question is much more difficult. I've tried this, and I changed your main program to
public class C1 extends b.B1 implements I1 {
public static void main(String[] args) {
a.A1 a = new a.C1();
System.out.println(a.m1());
a.A1 b = new b.B1();
System.out.println(b.m1());
}
}
(I actually used different package names to avoid conflicts with the variable names. So my code looks a bit different from the above.)
I've confirmed that this prints "b" and "a". That is, if I create a new B1, its m1 method does not override the one in A1. Thus if I print b.m1(), since b is of type A1, polymorphism doesn't kick in, and the method declared in A1 is called. So what's going on with C1?
C1 inherits the m1 method from B1. But even though the m1 method in B1 doesn't override the one in A1, the m1 method in C1, which it inherits from B1, actually does override the one in A1. I think it has to do with this clause in 8.4.8.1:
mA is declared with package access in the same package as C, and either C declares mC or mA is a member of the direct superclass of C.
Here C is your C1 class. mC is the m1 that's inherited from B1. In this case, "C declares mC" is false, because C1 doesn't declare m1, it inherits it. However, I believe "mA is a member of the direct superclass of C" is true. As I understand it, B1 has all the members that A1 has. B1 declares its own m1, and since it's not overriding, it's a new m1 that causes the m1 it inherits from A1 to be hidden. But even though it's hidden, it's still a member. Thus the condition that mA is a member of the direct superclass of C (which is B1) is satisfied, and thus all the conditions of 8.4.8.1 are satisfied and thus the inherited m1 in C1 overrides the one in A1.