You have to put a cactus in a furnace and then apply the resulting dye to the wool.
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You can use it on wool, to make a block of green wool, or you can use it on a sheep to make a green sheep, who will yield blocks of green wool when killed or you use shears on it. Cactus Green dye can also be combined with Bonemeal to make Light Green dye.
You can dye sheep blue and yellow. Breed them and they make a green sheep, then shear/kill it for it’s wool. However there is no other way to get green dye other than cactus
No, you need wool.
there is no "carpet" item/block in minecraft, but people use different colored wool as carpet for minecraft.
You can make a carpet on Xbox 360 Edition of Minecraft using wool.