Q2 is just your typical Deviation/Variation question...
You need to remember three four things:
1. Compass <-deviation-> Magnetic <-variation-> True
2. "Deviation West, Compass Best, Deviation East, Compass Least"
3. "Variation West, Magnetic Best, Variation East, Magnetic Least"
4. West = Negative, East = Positive
So, you have the compass heading 127 and you need magnetic track... deviation is -3... negative = west, so 3W... "deviation west, compass best", so we need to subtract from compass heading: 127-3 = 124 magnetic heading.
Now for magnetic to true... variation is 2E... "variation east, magnetic least", so we need to add to magnetic to find true. 124+2 = 126 true.
Answer should be D: 124°, 126°; (assuming nil wind... as these are technically "headings", so as KT1988 pointed out, if they mention drift angles/wind etc, then you have to factor those in to get "tracks")