1/2" nominal pipe has an OD of 5/8". I think the 3/4" is 7/8". If the body of the faucet is 3/4", a 1" would give you 1/16" clearance all around. If you have interior shutoffs, and you remember to use them, a regular hose bib would work, but it is safer to use a frost-free if it freezes where you live. Remember, though, if you leave a hose on the connection and it is plugged with say a sprayer nozzle, it will not be able to drain, and you'll still split things in a freeze. Basically, never leave a hose connected when it could freeze. Also, you want a little slope on the fixture so it can drain properly when you close it. Check the installation specs to see how much, and the range. Basically, it would probably work if it was level, but can't be sloped back into the house.