1. One of my friends chose NO, even though he used WIC and Medicare. His case was approved. However, I think you should choose YES here and write a short letter explain the situation. Honesty is the best policy.It is your decision.
2. I think should be H1b. By the way, I don't think USCIS will care about this. They will know the right answer from your attached material. I my application, I has made several small mistakes.