Hi Tricia, in the Bootcamp training we're advized to delete the provacy policy as DJCubby explains. You may want to follow the training precisely to stay on track, (unless unlike myself you have a level of computer skills).
Good luck :-)

WordPress usually has a draft copy of a private policy already set up for you to start with. Unless you would rather use that, you can delete it to avoid confusion in the future. Just make sure you delete the correct one by checking out the wording before you delete it. Also, after you delete it, empty it from trash. If it has the same title as your other one, it can still cause issues if it is sitting in trash.

Don't worry about deleting it. If, in the future, you would rather use the WordPress version of a privacy policy, you can regenerate a new copy with a click of a button.

Hi there's couple of them, there's also one in WordPress sites back office in addition to your site content templates. That comes by default with every new WordPress installation.

You can edit or add clauses to your privacy policy however necessary to suit your business. I would seek a professional in regards. If you meant something else, kindly let us know.