Q1 What is the difference between a process and a thread?
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A process has its own memory; threads live inside a process and share it.
That one difference explains the rest. Threads are cheap to create and to switch between, and can corrupt each other's data, which is why they need locks. Processes are isolated, so one crashing does not take the others down, but they have to go through the operating system to talk to each other.
What it is really testing. Whether you can derive the consequences from the one fact. If you can, every follow-up in this subject answers itself.