These are not stupid questions! I am a really usual learner do I recommend googling it and watching a video.
But! Yes you can put it on DSP and run it through to cut out the shape. Or you can stamp, line up the framelit and run it through to cut out the stamped shape. You might need to use a bit of post it note to hold the framelit in place when you run your sandwich through.
The piercing template - yep! Just line up and poke away!