Yes to both your questions. The players on the negotiations list are usually the highest 5* quality available (to me on level 5, it is Q44. For you, it will be Q39). You can see the manager and their level they are when you start to make an offer (I believe you can only offer for those a level above you, so as an example, you could make an offer for my player and vice versa, while I can make an offer for level 6 players and vice versa).

Alternatively, if a club is on the same server, you can offer for any of their players as well.