I have a queue where I want the failed items to be retried after a certain delay of 1 hour. Can we achieve that in orchestrator using the Auto-retry option?
No, you cannot control from Auto-Retry option as it’s only for managing retries.
You will have to achieve this by code in your process.
Thanks,
Ashok 
Auto retry might not work in that way
rather you can use condition in your code and add queue item with postponed time when failed and once max additions are reached do not add any more
cheers