I suggest you to read the following link below first
JSON and XML comparison
The first comment clearly explains your first two questions.
and for the last question my suggestion would be JSON, The reason is that JSON is light weight and also its very easy to handle and parse when comparing to XML formats. also I believe that JSON started overtaking the technology over XML in many aspects. There are tons and tons of examples and discussions available in web to support the JSON format over XML.
And for Android, since it is a technology which is going to rule the world for next few decades you must decide whether you need to choose the older technology(XML) which is getting down or the newer technology (JSON) which is growing up. The choice is yours.