Sensor my be 1hz but the logic has potentially full history of sensor reading and can extrapolate future values based on the past and knowledge of what it is tracking and then predict various scenarios.
This is how networking simulation/games are working by predicting future movement of all entities before the actual data arrives on the network to make everything smooth and buffer any minor network issues - it works very well given the the principle of conservation of momentum but obviously can only be used for short intervals - if you loose your network data for too long , the prediction engine will eventually diverge and once you get the data stream back , you may experience your simulation snapping instantly to match the underlying data ( the reality )
I guess what I am trying to say is that there are solutions to most problems but as with everything , result may vary