PIC Microcontrollers, ambiguous quiz questions
This is ambiguous unless there is a context of a particular PIC model.  In some cases even that is not good enough and the circuit needs to be known.  Some PICs have only internal oscillators (10Fxxx), most newer PICs have internal oscillators but don't force you to use them.  They can be clocked externally or can drive a external crystal or external R-C.  Some older PICs require at least some external oscillator circuitry (16F877).

This question is OK if there is a clear context which family of PICs the question is about.  Timer 1 is fixed at 16 bits in some families, so this is valid (within context of such a family).



Added:

You now say that these questions were assuming the context of a PIC 16F877A.  In that case I think question 1 is a bit ambiguous since at least part of the oscillator circuitry must be external to the PIC.  This PIC can function with a external clock directly applied, can drive a external crystal, or can drive a external resistor and capacior.  The driver for the crystal and R-C oscillator are internal, but not the whole "clock circuit".  I think it's not too hard to guess the instructor intended the answer to be "true", but one could argue a case for "false".

As for question 2, that is perfectly fine within the context of a 16F877A and the answer is clearly FFFFh (choice B).  I see no grounds for arguing it was ambiguous or that the answer isn't clearly choice B.