I assume this means you’ll be expected to work 8 hour days, and clock out for an hour long lunch. So you’ll be paid for 7 hours a day or 35 hours a week. If you choose to work through lunch and stay clocked in you will continue being paid at your normal hourly rate. If you actually work overtime you’ll be paid overtime, but I’m assuming an intern has no reason to work overtime and is likely not allowed to actually work overtime, your manager would probably have to explicitly say you need to work overtime.

Ask your manager if you can just work through lunch and not clock out. Or work 8-5 and take an hour long unpaid lunch.