"Å dra" is the general "to go", and only implies that you're going somewhere - not whether you're doing so by foot, or car, or any other specific means of transport.
"Å gå" strictly means "to walk" if you're referring to a mode of transport.
Both verbs have several meanings depending on the context, but this is how they relate when we're talking about going/walking (to) somewhere.
Modern English no longer uses 'hither' and 'thither' but they were used to imply movement from one place to another, e.g. 'He is here', 'He comes hither'. (her = here) (hit = hither) (der = there) (dit = thither)
No, "dra" does not indicate how you are going somewhere, so you should use "go" or something similar with an equally broad meaning.
"Hit" is used when a movement is part of the context in which the position is indicated. For example, "Jeg går hit". Whereas "her" is used when no movement is part of the context in which the position is indicated. For example, "Jeg er her".
"Å dra" translates to "to go" in the general sense. There is no specific means of transport implied.
I wonder why "We are going that way" isn't accepted, because it describes exactly the directional intention and it is one of the suggestions in an english dictionary.
No, "that way " can mean "in that manner" or it can mean "that path or direction", whereas "there" is a particular spot.
So 'drar' can mean both 'go' and 'leave'? do you determine the difference from context?
My answer 'we are heading there' was marked as wrong. The answer is 'we are headed there'. I don't think there is much difference in theses two sentences.