If I install TeamX 1.2 then their 1.3.5 patches will I be good to go censorship wise?
Yes indeed. That is sufficient.
The only thing I'd recommend is to use 1.2.1 RC
instead of the 'stable' version. Despite the the RC in the title, it's quite complete and throughly tested to be considered a final release.
And, what is more important, 1.2.1 improves compatibility of the latter 1.3.5. With the 'stable' 1.2 patch you could experience some issues in Junktown after 1.3.5 patch installation. This affects only some specific distributions of the game, though.
--- Late update ---
P. S. Note that my statement refers to the English versions of the game only. Other languages, like AFAIR German, may require additional mods which address censorship issue.