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If there is copy of a game free (as in not being played) in your Steam family, anyone in your steam family can loan it and play it so if you have 2 copies of game owned in the family any two people in your family can play them at a time. Do note that what DLC you get to play depend on the copy you're playing (ie say you own full game with all DLC and there's another copy with no DLC, someone borrows your copy then you can only play the game without DLC until the game with DLC is free again)
There are limitations to the system:
Free games and DLC can't be shared, at all.
Games that require 3rd party accounts or launchers can be shared (EA, Rockstar, Ubisoft etc)
Games that do not support family share can't be shared (developers can opt in or out any time they want).
Yes, they could play together assuming no limitations apply (see above) and as long as 2 copies are owned and available (not being played at the time). For all 3 of you to play together you'll need all accounts own their own copy.
Oh and Steam Families has it's own forums:
https://gtm.steamproxy.vip/groups/steamfamilies/discussions/