We present Keck spectropolarimetry of the highly polarized radio-loud
quasar 3CR 68.1 (z = 1.228, V = 19). The polarization increases from 5
% in the red (4000 Angstrom rest frame) to greater than 10% in the blu
e (1900 Angstrom rest frame). The broad emission lines are polarized t
he same as the continuum, which shows that 3CR 68.1 is not a blazar, a
s it has sometimes been regarded in the past. We also present measurem
ents of the emission lines and a strong, blueshifted, associated absor
ption line system as well as a detection at the emission-line redshift
of Ca II K absorption, presumably from stars in the host galaxy. Neit
her a blazar nor a partially obscured radio-quiet QSO, 3CR 68.1 belong
s to an observationally rare class of highly polarized quasars. Taking
into account the other unusual properties of 3CR 68.1, such as its ex
tremely red spectral energy distribution and its extreme lobe dominanc
e, we explain our spectropolarimetric results in terms of unified mode
ls. We argue that we have a dusty, highly inclined view of 3CR 68.1, w
ith reddened scattered (polarized) quasar light diluted by even more d
ust-reddened quasar light reaching us directly from the nucleus.