Alas it looks like we goofed on 1. It should read that the Mentor can pick 2 additional Mentor moves from the Mentor starting moves selection.
2. Its a straight swap out for a background/training at that level. If you have a -1 in Boating, you can't use that to swap out for a 0 in Chicken Keeping, although I suppose if you wanted a slightly faster or more broadly capable character that would be an easy tweak.