128 MS/s is not a rate that is possible with the USRP1. The console will contain a UHD warning that a differen, possible rate was chosen (most likely, 8MS/s).
Now, you contradict that rate by having a "Throttle" block in your flow graph - that block's job is only (and nothing more) to slow down the average rate at which samples are being let through – and that is something your "USRP Sink" already does. In fact, modern versions of GRC will warn you that using a throttle block in the same flow graph as a hardware sink or source is a bad idea.
Now, you'll say "ok, if the USRP sink actually needs to consume but 8MS/s, and my interpolator makes 128 MS/s out of my nominally 1M/s flow (really, signals within GNU Radio don't have a sampling rate), then that's gotta be fast enough to satisfy the 8MS/s demand!".
But the fact is that a 128-interpolator is really a CPU-intense thing, and the resulting rate might not be that high, made even worse by the choppy nature of how Throttle works.
In fact, your interpolator is totally unnecessary. The USRP internally has proper interpolators for integer fractions of its master clock rate 64MS/s, which means that you can set the USRP Sink to a sampling rate of 1MS/s and just directly connect the file source to it.