1. Of the list mentioned, InDesign is created for just such an application
2. If you know how to use InDesign, then "Place" your images as you want to see them in the document. If you don't know how to use it, there is not enough space, here, to teach you how.
3. Best way to prepare a document for the printer is to talk to them. They may be able to handle the InDesign file directly in it's native format, or they may ask you to convert it to something else, such as a .pdf.
It doesn't matter what program you use. If you can import your graphics into a Word document, then the end result won't show WHAT application it was laid out in. There is nothing "non professional" in a Word document. A blank page created in Word, InDesign, Illustrator or other app will look the same. A page with a full page graphic, placed in Word, InDesign, Illustrator or other will look the same in all of these.
Even if you have "fancy" elements to your pages such as captions, titles, footers, headers, page numbers or whatever, as long as you know how to use the software app, you can pretty much create identical pages on almost any of them.
Once you've settled on what program you will use, based on what program you know HOW to use, just lay out your pages. Your REAL issue will actually be what kinds of paper work best and what kind of binding you want. In your situation, again, the print shop will offer the best advice on these two steps.