Pace is a basketball metric measuring the number of possessions a team uses in 48 minutes. It has nothing to do with whether a team is good or bad, it just measures how fast or slow a team plays.
Neither is inherently better. Pace measures style, not quality; a team can be excellent or terrible while playing fast, and the same is true playing slow. What matters for winning is how efficiently a team scores and defends at whatever pace it plays.
Yes. A faster pace means more possessions in a game, so a team scores more total points per game even if its per-possession efficiency (its Offensive Rating) doesn't change at all. This is exactly why ORTG and DRTG measure production per 100 possessions instead of per game, so pace doesn't distort the comparison.