  $\chat=1$ fermionic string theory, which is considered as a fermionic string
theory in two dimension, is shown to decompose into two mutually independent
parts, one of which can be viewed as a topological model and the other is
irrelevant for the theory. The physical contents of the theory is largely
governed by this topological structure, and the discrete physical spectrum of
$\chat=1$ string theory is naturally explained as the physical spectrum of the
topological model. This topological structure turns out to be related with a
novel hidden $N=2$ superconformal algebra (SCA) in the enveloping algebra of
the $N=3$ SCA in fermionic string theories.
