Yes, you can do it if you know the backup password. When you click on the Restore option, it will show the recent backups of your iPhone. At the same time, there is a checkbox for you to enter the password of the encrypted iPhone backup.
If your iPhone backup is created via this software, you can restore it to the new iPhone. Otherwise, you cannot do that.
No, you cannot do it. During the backup or restore process, you can do nothing but just to wait for the process to end.
You should try your best to find the iPhone backup password. You can try iSunshare iTunes Password Genius to recover it. For the iPhone with a backup password, iSunshare iSyncGenius will detect it and ask you to enter the right password. Only in this way, you can begin the data backup process.
For the photos or pictures restoration, you need to restart the iPhone to find out check out all the backup photos.