QWhen playing this follower's Fanfare ability, if I can't select an enemy follower on the field, can I still choose option 1 to bury the top card of my deck?

ANo. If you can't select an enemy follower, you would be required to choose option 2. Likewise, if you can't select a Yokai follower not named Kasha in your cemetery, you would be required to choose option 1. If you can't make the prerequisite selection for either option, then you can't play this follower's Fanfare ability.

QIf an evolved Ginsetsu, Great Fox is on my field, and I select option 1 for this follower's Fanfare ability, does it deal 2 damage?

AYes, it does.