Green's Theorem states that
\int\int_{R}\Bigl( \frac{\partial Q}{\partial x} - \frac{\partial P}{\partial y}\Biggr) = \oint_{C} Pdx + Qdy,
where C is the boundary curve of the region R.
(1) Your outer limits are determined by the region begin integrated over. You were given the curve which encloses R, from that you can determine R. (Draw a picture)
(2) This goes along with (1). Draw a picture, and you will see why x^{2} is the lower bound. Remember, that first integral is integrating over y, that is to say you are integrating as y ranges from x^{2} to \sqrt{x}.
(3) Green's Theorem is not based on partial integration. It instead relates the integral of a vector field through a region to its integral around the boundary. Hence it is very useful as it can simplify integrals.
What you are describing in (3) is a method of evaluating double integrals, in which case you are right. In this scenario you are integrating over y first, then over x. Conversely you could integrate over x first and then y, except that you would then need to vary x from y^{2} to \sqrt{y} and x from 0 to 1 (a picture will allow you to see why this is so).
I also believe that there is a sign error in one of the two formulas which you posted so you should double check that.