1. You can optionally block it on the "DNS Forwarder" page using the "Block DNS Rebind attacks"; however, I'm not sure if that setting will have any effect unless you have the DNS forwarder enabled (you probably do).
2. I don't know - Google probably does

3. RFC 1918 Addresses are the following:
10.0.0.0 - 10.255.255.255 (10/8 prefix)
172.16.0.0 - 172.31.255.255 (172.16/12 prefix)
192.168.0.0 - 192.168.255.255 (192.168/16 prefix)
Unless you have a special or odd setup, you'll want to leave this block in place.
Unfortunately, there is no simple way to block a list of IPs or IP ranges without manually creating a rule for each IP or IP Range.