AFAIK, accuracy and precision have to do with measurement.
From Kirkup's Experimental Methods book, which we used in undergrad physics:
Accurate - close to the true value but, unless given, the uncertainty could be of any magnitude.
Precise - value has a small uncertainty, but this does not mean that it is close to the true value.
Accurate and Precise - close to true value and with a small uncertainty.
In part 1) of your question, 0.7 has less significant figures than 12.5. Its accuracy would be determined by whether or not its measured value (0.7) is in fact close to its true value. The sigfigs inform the precision of your statement of the answer, not the accuracy of the original measurement or your finding ( i.e you state the answer to the same number of figures as the least precise measurement made.)
So I could measure the length of a pendulum with a laser and time its swing with an atomic clock (i suppose!), which would be very precise, but end up finding which is not very accurate.
I hope this is useful!