1. It isĀ falseĀ that third-person narrators often use the pronouns "I" and "we." That would be a first-person narrator. A third person narrator uses pronouns such as he/she. they...
2.Ā I am going to assume the answer isĀ false,Ā because if the narrator is an observer, that means that he only observes, doesn't take very active roles.