Question 1: I decided to use the intersect overlay tool because it made the most sense to me for connecting the water and roads layers. I did not notice any difference between the union and intersect overlay tools.
Question 2: Used the erase tool to exclude areas of conservation areas that overlapped the potential campsites once again because it made the most sense because we were subtracting and not connecting portions of layers.
Question 3: There were a total of 748 features within the potential_sites layer. The area of the smallest feature was 748 and the area of the largest feature was 7,765,034 square meters.