SSD with PCIe 3.0 compatible with MBA which uses PCIe 2.0?
Yes, it is likely to be compatible - however there are (ofcourse) no guarantees.

According to the manufacturer of the adapter, they have tested that specific SSD with the adapter - so that sounds reasonable.

I would consider using this specific adapter from the same company:

https://www.amazon.ca/dp/B07FYY3H5F/ref=dp_cerb_3

It is listed as supporting your SSD. In addition ifixit.com (well known and respected site) lists this particular adapter as tested with your model of MacBook Air - though with a Samsung Evo 960 SSD.

https://www.ifixit.com/Guide/MacBook+Air+13-Inch+Early+2017+SSD+-NVMe+Replacement/121102