It's a bit more complicated than that - current commercial DCPs basically are all Interop, but KDM, the KeyDeliveryMessage for encrypted content ran through it's own format changes over the years. Wolfgang is right that 'classic' Interop KDMs are outdated now, whereas the 'Modified Transitional 1' is, as the name says, a breed between Interop and SMPTE and aimed towards compatibility with both Interop AND SMPTE DCPs.
DCP-o-matic supports no 'old style' Interop KDMs, but it does support Interop DCPs - and if encrypted, they currently should be be used with the 'Modified Transitional 1' KDM type.
This is all about playing safe - the specific projection system you are testing it on may be ok with either version, but any other system may not. So stay with these recommendations.
- Carsten