Explanation
Azure SQL Database is a fully managed platform as a service (PaaS) database engine that handles most of the database management functions such as upgrading, patching, backups, and monitoring without user involvement.
SQL Database delivers predictable performance with multiple resource types, service tiers, and compute sizes.
It provides dynamic scalability with no downtime, built-in intelligent optimization, global scalability and availability, and advanced security options. These capabilities allow you to focus on rapid app development and accelerating your time-to-market, rather than on managing virtual machines and infrastructure.

Explanation

Box 1: Yes
Azure Data Studio is a cross-platform database tool for data professionals using on-premises and cloud data platforms on Windows, macOS, and Linux.
You can use Azure Data Studio to connect to an Azure SQL Database server. You'll then run Transact-SQL (T-SQL) statements to create and query Azure SQL databases.
Box 2: No
SQL Server Management Studio is for configuring, managing, and administering all components within Microsoft SQL Server, not to create SQL notebooks.
Instead use Azure Data Studio to create SQL notebook.
Box 3: Yes
You can use the Azure Data Studio to restore databases.