Let $K$ denote the total rotational kinetic energy of the rotating rod (with mass density $\lambda$). Take $x_1(t)$ to be the (fixed) axis of rotation of the rod. For simplicity, we assume that the magnitude of the angular velocity of the rod, $|\omega(t)|$, is a constant.
First of all, note that since $q(t)$ is a unit vector, we have that
\begin{equation}
\frac{d |q(t)|^2}{dt} = \frac{d (q(t) \cdot q(t))}{dt} = \frac{d(q(t))}{dt} \cdot q(t) + \frac{d(q(t))}{dt} \cdot q(t) = 2 \frac{d(q(t))}{dt} \cdot q(t) = 0 \;\; \; (\textrm{i})
\end{equation}
That is, $ \frac{d(q(t))}{dt} \cdot q(t) = 0$, so $\frac{d(q(t))}{dt}$ and $q(t)$ are perpendicular.
Since $\omega(t) = q(t) \times \frac{d(q(t))}{dt}$, we have that
\begin{equation}
|\omega(t)| = |q(t)| * |\frac{d(q(t))}{dt}| * \sin(\frac{\pi}{2})= |\frac{d(q(t))}{dt}| \;\; \; (\textrm{ii})
\end{equation}
To calculate $K$, we imagine dividing the rod up into infinitesimal chunks of mass $dm$. Assume that this mass element has a displacement vector $x(t)$ from the axis of rotation. Now, we can calculate $x(t)$ using simple vector geometry:
\begin{equation}
x(t) = x_1(t) + |x(t)-x_1(t)| q(t) \;\; \; (\textrm{iii})
\end{equation}
Using equation (iii), we have that the velocity $v(t)$ of this chunk is given by
\begin{equation}
v(t) = \frac{dx(t)}{dt} =
\frac {d(x_1(t))}{dt} + \frac{d(|x(t)-x_1(t)|)}{dt} q(t) + |x(t)-x_1(t)|\frac{d(q(t))}{dt} \;\; \; (\textrm{iv})
\end{equation}
But $\frac{d(|x(t)-x_1(t)|)}{dt} = 0$ for our mass element (why). Furthermore, $\frac{d(x_1(t))}{dt} = 0$, for the axis of rotation is fixed. Hence, equation (iv) becomes
\begin{equation}
v(t) = |x(t)-x_1(t)|\frac{d(q(t))}{dt} \; \; \; (\textrm{iv})
\end{equation}
We can easily calculate the magnitude of $v(t)$:
\begin{equation}
|v(t)| = |x(t)-x_1(t)| * |\frac{d(q(t))}{dt}| = |x(t)-x_1(t)| * |\omega(t)| \; \; \; (\textrm{v})
\end{equation}
The kinetic energy $dK$ of the mass element is then given by
\begin{equation}
dK = \frac{1}{2} dm |v(t)|^2 = \frac{1}{2} dm |x(t)-x_1(t)|^2 * |\omega(t)|^2 \; \; \; (\textrm{vi})
\end{equation}
We now impose a new coordinate system on the rod. Imagine we place the real line $r$ along the rod, with $r = 0$ being the axis of rotation. It then makes sense to set $|x(t) - x_1(t)| = r$ (for the mass element is an arbitrary distance $r$ from the axis of rotation). With these substitutions, equation (vi) reads
\begin{equation}
dK = \frac{1}{2} dm r^2 \omega^2 \; \; \; (\textrm{vii})
\end{equation}
(Here, $\omega = |\omega(t)|$).
Now, we can finally calculate $K$ by integrating the kinetic energies of each mass chunk along the rod.
\begin{equation}
K = \int dK = \int_{0}^{L} \frac{1}{2} dm r^2 \omega^2 = \int_{0}^{L} \frac{1}{2} (\lambda dr) r^2 \omega^2 = \frac{1}{2} \lambda \omega ^2 \int_{0}^{L} r^2 dr =\frac{1}{6} \lambda \omega^2 L^3 \; \; \; (\textrm{viii})
\end{equation}
Since $\lambda L = m$, we have that
\begin{equation}
K = \frac{1}{6} m \omega^2 L^2
\end{equation}