From No.1 simply follow the small path up the long slope. When it turns right onto higher 'ledges' - follow it until you are on the main grassy slope running parallel to the crags, and then follow the arrow.
As your height increases, the views behind become extensive - from Lancaster all the way around Morecambe Bay. The view of the crags is also impressive - steep, crenellated edges of the tilted layers of limestone. Don't forget, the rock was laid down in a shallow sea, horizontally. The layers are now tilted up at a good angle.
The cache is in a small area of limestone and you will need to reach in. A spoiler pic may help but hopefully the GPS will get you there. Don't disturb any plants - there are none in the correct hole.
Onto No.3