Eyes

Oh boy - that setting changes names and places in the UI every 20 minutes.

These days, yes it called 'Raytracing' and I think you can just leave it at the default settings.

Which should be 

Method: Screen-Trace

Resolution: 1:2

But you can bump up the Resolution to 1:1 if your computer can handle it.

(If your computer can't handle it, you can always work in solid mode and then just playblast the material view when it's time for that)

Yes,

The default of 1:2 should be fine, but if you are further away from your character, he is 'drawn' with less Pixels and can become a bit blurry-eyed. A Resolution of 1:1 will hold up in that case, but is heavier on your Computer.