The statement that a certain percentage of body fat is essential for the body to function effectively is true. Making, breaking, storing and mobilizing fats is at the core of how humans and all animals regulate their energy. So, fats are essential for energy regulation. There are two types of body fat: storage body fat and essential body fat. Both of them are taken into account when calculating body fat percentage.
The answer to you're question is ... True.
Yeah, since it's legal to treat one without a licence :)
A diet higher in lean protein and less processed carbs, would be a positive change to prevent diabetes with exercise.