Yes, they can be used individually, or together and in any order.
Level 2 has a theory component and a practical assessment. For the practical assessment please read the first 1-4 pages of the Assessment Guide in each unit standard.
No, projects your students undertake in school are the evidence and learning they develop and use towards the assessment of the standards. A project is deemed acceptable so long as the project meets the learning intentions of the unit standard.
No, your learners may complete any project, as long as it shows they meet the assessment criteria.