"George and Rosa"
is the "and" supposed to be a part of the following word with and rosa, being considered one item or should I report this?
Yes, that's the rule, but as a native Arabic speaker, let me tell you, between me and you, that this specific rule is not that strict; no one will care if you split the "and"/"َو" from the next word.
Yes I think it's meant to be like that. When I tried answering with the 3 separate words (so using 3 buttons) it marked it correct but said I had an extra space! So I went back to using the 2 buttons with "George" on 1 and "and Rosa" on the other.