Yes, the PSP can connect to the PlayStation Network, where you can purchase and download games.
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If you're asking whether you can play UMD games in PSP GO, the answer is, no you can't.There's no UMD on the PSP Go. So you can only download games and play them on the PSP GO.
The same as the cost would in a store for a PSP game.http://www.destructoid.com/psp-download-games-will-cost-the-same-as-retail-games-147396.phtml
A torrent is a file that you download that links you to other peers who are sharing it, to download the file the torrent specifies. To download a torrent, you need a client such as utorrent. A psp torrent I am assuming is a .torrent file used to download psp games.
First find out how to hack your PSP so it can run homebrew applications. Then download the SNES emulator for PSP. Now go to any torrent or ROM site and download any of the games that you want. Load them on to the PSP and have fun!
The PSN is the place to go for legal PSP game downloads.