Quinientos pesos! ES mucho.
1. b. you use queria because if you say "quise" it means you stopped wanting to learn ballet sometime in the past.
2. b. you use conoci' because you've already met the professor in the past
More info is needed in order to answer, is this from a video or something like that
Tú eres americana? Ese es el español que les enseñan?
Como quiere la profesora que les respondan?
Bye