Arithmetic operations can be performed between float and int variables in C due to type promotion, allowing expressions like a + b where a is an integer and b is a float. For reading a specific number of elements from a file, the functions listed include fileread(), getline(), readfile(), and fread(), with only fread() being valid for this purpose. The discussion suggests using tools like grep to check the definitions of these functions in the stdio.h header file. Participants clarify that some listed functions do not exist in standard libraries, indicating a potential quiz format with misleading options. Overall, the conversation emphasizes understanding function availability and type promotion in C programming.