Using COUNTIF formula using controlled data in cell pop-up menu

I'm making a spread sheet that involves adding up the number of times a certain item occurs in a log. A pop-up menu is used in the cell to control the inputs of the log. I'm not sure how to go about using the COUNTIF function to count the number of times each item occurs. The "workout tracker" template in Numbers '09 does what I need to do when counting the "number of days exercised", but I don't understand how it was done. Can anyone explain this to me?
My log table is: (Dashes denote spacing)
Date---------Log Item-----Time
01/03/09---Item 1-------9:00am
02/03/09---Item 2-------12:15pm
03/03/09---Item 3-------9:10am
(you can only chose Item 1, 2 or 3 from a drop down list, you can't manually input anything else)
I want to use a countif command for a table that is:
-----------No. of Occurances
Item 1-------1
Item 2-------1
Item 3-------1

I'm guessing you are curious about the way they did COUNTIF and what "Indicator" is. If you unhide all columns in the Workouts table, you'll see a column D with the header "indicator". The reference to "Indicator" in the COUNTIF functions refers to the entire column. There is a fairly long formula in the cells of that column but, basically, it just populates it with 1-3 depending on what you pick in the Activity popup.

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