You're gonna have to put that iron back in the electrolysis tank and zap it longer. There is still too much rust on it. You shouldn't have any of that brown rust on it before you seal it.
I don't think so. Granny had her grandmother's irons, there were two. I have no idea where they are now = there were "raids" on this house while I was up North.
Those handles you picture would have been too hot to use. But, then again, your handles are missing.
Great Great Grannies irons were of this shape, with a handle: