1. You'll lose all your data. I'm unaware of anything that you can do to import your parameters.

2. You have to click the upgrade button. You will get a code. MAKE SURE YOU'RE LOGGED INTO THE PSN ACCOUNT THAT IS LINKED TO YOUR FFXIV PS3 ACCOUNT BEFORE YOU USE THE CODE or it will be consumed and be useless and you'll have to buy a copy or plead to SE support. You can't go back to PS3 version after.

Hope this helps.