It can only identify if it's gold. By rubbing the tile on hold should leave a gold mark on tile
Most likely federal, as monarchy isn't a strong central government, it's a one person government with optional advisors. A federal government implies a democratic style of leadership with a main government instead of separate small ones within a country.
Would it be number one? I'm not totally sure but I think so because for number two you would have to screw it longer which takes a little more effort.
Just saying I don't know if I'm 100% correct but I think I could be correct.