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For variable speed drive ATV process, what is the status of relay R1 when assigned to operating state fault?

Let us take R1 as an example & the same will go for other relays, If R1 is assigned to fault detection, then notice those 3 states for R1A-R1C
When drive is not powered then R1A-R1C is normally open NO as indicated in the drawing
When the drive is powered on & healthy "drive ready" then R1A-R1C is OFF (Contact closed)
When drive has a fault, then R1A-R1C will open (contact will open in case of fault)

The above states are  in line with the highlighted part of document indicated that the contact open in case drive detected error (state 3) & then drive has been switched off (state 1).
So, drive Fault state configuration means if drive state is healthy you will get a signal permanently from the drive. then, if you are not receiving the signal means drive has tripped on a fault.

This explains why the contact R1A-R1C is placed in the circuit of line contactor as indicated in the drawing you have attached, this means that if you applied this wiring & in case a fault occurs, the relay will disconnect the line contactor in case of fault.

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