Box 1: No -
Two methods are required.
Box 2: No -
Self-service password reset is only enabled for Group2, and User1 is not a member of Group2.
Box 3: Yes -
As a User Administrator, User3 can add security questions to the reset process.
Reference:
https://docs.microsoft.com/en-us/azure/active-directory/authentication/quickstart-sspr
https://docs.microsoft.com/en-us/azure/active-directory/authentication/active-directory-passwords-faq