Q. 1 Village square; 27th of June, morning; small rural village somewhere in America; about 100 years ago, the time of the first settlements (tractors from 1850 onwards)  
Q. 2. Tessie Hutchinson; Mr Summers 
Q. 3 By indicating that the mood of the story is different than expected (with a lottery you expect people to be happy and excited, but the villagers are quiet and nervous);  
section 3: their jokes were quiet and they smiled rather than laughed;  
section 5: hesitation 
section 13: he blinked his eyes nervously 
section 14: a sudden hush 
section 15: wetting their lips; humourlessly and nervously 
section 19: breathless pause
Q. 4. sections 2 and 3, when the kids were building piles of stones (this is a hint to what is to come - foreshadowing)) and is repeated in the  last section, 26.