Using proofed (?) yeast in a recipe (confused about amounts)
The recipe you're using sounds nontraditional (the full recipe may be helpful to describe the &quot;why&quot;), but it is almost certainly looking for you to use 1/8 tsp of instant yeast granules directly into the flour.
The small amount and use of ice water, rather than warm water are not traditional for bread, but also not unheard of. The method for your recipe may include other non traditional details as well--perhaps a longer proof time, or a  less fluffy outcome.
(If you edit your question to include the full recipe &amp; method as well as what you're making, it may be easier to answer that part)