Handle (2-3) with separate JIRA issues.
For (1), make the following adjustments:
In section 1.4:Normative References, remove the [RFC3986] entry.
Remove the last two paragraphs of section 5.8:References
Add the following text at the end of section 5.8:References
"""
The optional Source specifies that the reference is to sheets and/or cells in a different location (possibly in a same-document fragment) than that for the formula in which the reference occurs. The Source IRI shall be an IRI reference [RFC3987] conforming to the general syntax IRI-reference rule (section 2.2 of [RFC3987]) after each occurrence of paired single-quote characters (APOSTROPHE, U+0027) in the Source is unescaped to a single unescaped (not %-encoded) single-quote character in the IRI reference. [Note: The escaping of single-quotes as paired single-quotes in the Source is because the Source is delimited by solitary single-quote characters in the Reference.]
Resolution of the IRIs of Sources to absolute IRIs, acceptable IRI schemes, and additional scheme- and application-specific constraints are host-defined behaviors (see section 3.4 HOST-RESOLVER).
[NOTE: Except where the Reference is expressed in a CDATA section, any direct occurrence of "&" (AMPERSAND, U+0026) in the IRI reference can be introduced by use of a character entity or the pre-defined general entity "&" [XML1.0]. When the full Reference is expressed in an XML attribute where the AttValue form has surrounding single-quote characters, all occurrences of the single-quote "'" (APOSTROPHE, U+0027) in the Reference, including the doubled occurrences, can be introduced by character entity or the pre-defined general entity "'" [XML1.0].]
[BEGIN NOTE:
IRI references allow use of specific ranges of Unicode code points beyond U+007F (see the uschar and iprivate syntax rules in section 2.2 of [RFC3987]). The IRI syntax allows only a subset of code points corresponding to ASCII characters in the range U+0000 through U+007F. The excluded ASCII characters can only occur in IRI References via escaping in positions where IRI syntax rule pct-encoded applies. The excluded characters include the controls, U+0000 through U+001F and U+007F. The remaining excluded characters are
SP SPACE, U+0020
" QUOTATION, U+0022
< LESS-THAN-MARK, U+003C
> GREATER-THAN-MARK, U+003E
\ REVERSE SOLIDUS, U+005C
^ CIRCUMFLEX ACCENT, U+005E
` GRAVE ACCENT, U+0060
{ LEFT CURLY BRACKET, U+007B
| VERTICAL LINE, U+007C
}
RIGHT CURLY BRACKET, U+007D
The character "%" (PERCENT SIGN, U+0025) can only be introduced as other than the first character from the pct-encoded rule by escaping as "%25" where the rule pct-encoded applies. Those non-excluded ASCII characters that have no reserved purpose in [RFC3987] do not benefit from escaping. See [RFC3987] for the conditions where escaping of the individual reserved ASCII characters is important.
END NOTE]
"""