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Collections are a way for you to organize kata so that you can create your own training routines. Every collection you create is public and automatically sharable with other warriors. After you have added a few kata to a collection you and others can train on the kata contained within the collection.
Get started now by creating a new collection.
Not a suggestion.
No, you apply the process to each word, not the entire string. The description is correct.
Quote from the kata description:
...returns the same string with all even indexed characters in each word upper cased, and all odd indexed characters in each word lower cased...