You need to ask the school that question. If the scholarship in Box 5 was paid to the school in 2017, box 1 should have that same amount in it even if it was billed (Box 2) in 2016.
The IRS gets a copy of the 1098-T and this one make it look as if you need to report $3,585.66 as taxable income. My advice is to check your student account records to see if this scholarship posted to the school in 2017 and if they posted a refund to you. If the scholarship posted to the school and you did not receive a refund, but the 1098-T shows Box 1 as zero, contact the school for clarification. If the school made a mistake, make them issue a corrected 2017 1098-T. The IRS can take years to investigate a return even after your original return has been processed. You don't want to get a letter from them charging you tax, interest, and penalties on this issue.