We are given the set:
\[
S = \{ z \in \mathbb{C} : |z + 1 - i| = 1 \}.
\]
This represents the set of complex numbers \( z \) such that the distance from \( z \) to the point \( (-1, 1) \) in the complex plane is 1 unit. This is the equation of a circle in the complex plane.
To clarify, let's rewrite the equation:
\[
|z + 1 - i| = 1.
\]
Let \( z = x + iy \), where \( x \) and \( y \) are real numbers. Then, the equation becomes:
\[
| (x + 1) + i(y - 1) | = 1.
\]
The magnitude of a complex number \( a + ib \) is given by \( \sqrt{a^2 + b^2} \). Therefore:
\[
\sqrt{(x + 1)^2 + (y - 1)^2} = 1.
\]
Squaring both sides:
\[
(x + 1)^2 + (y - 1)^2 = 1.
\]
This is the equation of a circle with centre at \( (-1, 1) \) and radius 1 unit.
Thus, the correct answer is:
\[
\boxed{\text{the circle with centre at } (-1, 1) \text{ and radius 1 unit}}.
\]