Well for starters the code you posted doesn't even compile. You have two extra closing braces before the inner do while loop.
However past that the reason it never says Player 1 wins is because you are comparing the random number against the address of the string at array and array1. Which even if it was comparing the value inside the string, I'm not sure how that would work.
Take a look at this, this works:
if (randNum == randNum1)
else if (randNum == 0 && randNum1 == 2)
printf ("Player 1 Wins!");
Since the random number is the index into the array of the thing they picked you compare against that.
To make your code a whole lot
easier to understand I would highly recommend using constants to represent the index values. (e.g. rock, paper scissors)
Also why do you have array and array1 which have the exact same values? Seems like you only need one of them.