Hi @vambati, sorry for the delay..
1) Yes it needs a fax line and fax modem installed in the server to work. I don't think openemr can handle ip faxing yet.
2) As far as I know, there are a few places you can send faxes. I know one of them is prescriptions that can be faxed. I don't think there is any other area that can be faxed yet.
3) the received faxes show in the Misc - > fax/scan menu option. There are three tabs, one for received faxes, sent faxes and the other tab is for scanning.
Hope that helps.