QWhen I increase my maximum play points by 1, do I also increase my remaining play points by 1?

ANo. Your remaining play points do not change.

QCan I play this spell with option 1 and raise my maximum number of play points to 11?

ANo. Your maximum play points cannot be greater than 10.

QIf my maximum number of play points is 10, can I still play this spell with option 1?

AYes, you can. However, your maximum play points would remain at 10.