So the SMART tests are performed by the drive as are the reports after it's complete. There isn't much for the various programs to do but to send the command to the drive itself to start the test, and then when the test is over, to read the results.
Looking at your drive, here is what concerns me:
Attribute 1 - Read Error Rate; Normalized value of 1 with threshold of 51.
Attribute 197 [C5] - Current Pending Sector Count; raw value of 278 [116 Hex]
Attribute 1 means the drive's threshold for read error conditions is 51 and it is currently at 1. Typically drives start off with normalized values of 100 or 99. The setting starts out high and decreases. This is currently in a failure state and is 50 normalized values beyond the failure threshold.
Attribute 197 [C5] means there are currently 278 sectors that encountered an issue with being read or written to, but then was able to be read, but are on a list of sectors that are to be relocated to another spot. These are sectors that you can not trust the data that is on them. This is a very bad thing if you're looking for reliability. It is extremely bad if this number increases.
Typically when the sector is reallocated, the raw value for 196 [C4] is increased by one.
The drive has been on for 10,409 hours or 433 days, which is just a little over 1.18 years, so this is minimal.
If this drive was in my file server, I would extract all the data off of it, and run the files against checksums that were calculated earlier when the drive was good. After this is done, the drive would be RMA'd if its under warranty, otherwise it would be discarded. I am extra careful when it comes to sectors starting to go bad. I haven't had any positive experiences with drives once they start having fuzzy/bad sectors.