1) It is again some issues between markup of component theme and your template - on hover effect is hiding field label. Normally this should not happen.
2) It is not possible.
3) Well you can try to put it in Label of the field.
1) May be. Not sure, but can try. Please send your site info.
3) You can name the field as "Agree to Privacy terms" and assign Joomla module with privacy to the application form page.
So I have tried different browsers and did not notice such effect - label is always shown. What browser do you use?
Ok... Well if you want you can send your template to us and we can try to replicate the problem and solve it.
You can get our help: Monday - Friday / 09:00 to 17:00 (GMT+2). but not limited. Our staff will be pleased to provide Premium support to every paid subscriber asap, but sometimes you should be ready to wait for our reply for up to 3 days. In case of free extensions we do the best to develop and maintain them either, but their support is not necessary.