A) Yes, in plants and animals only. The human equivalent is called "intersex" and is similar but not the same (not interchangeable). Both hermaphrodite organisms and intersex individuals have both reproductive organs. However, while the former are fully functional, meaning they are able to reproduce with both organs, the latter are not.
Ergo, hermaphrodite (or futanari in Japanese) humans are just a fantasy.
B) Sure, but it's not the end of the world.
C) We don't stop playing Because we grow old; We grow old because We stop playing.