"Once per level, if your familiar is close to you, it can cast one of your spells as a free action on your initiative count, even if you have already expended the spell. The spell functions as if you had cast it."
Interpretation 1: Each level my familiar can cast a spell from my spell list as indicated above. He can't do it again until I level up.
Interpretation 2: I'm level 3, so my familiar can cast 3 spells. Once he's used up those three, I have to wait until level 4 before he can cast spells again.
Anyone from Pelgrane able to clear this up?