Yes. Wii Fit is suppose to be played with a Wii - it's one of the programs for the console.
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Yes.
There is now the Wii Fit Plus (an addition to Wii Fit) which allows multiplayer mode.
Wii fit plaza is the place where you choose your mii, or your person, so that you can do the wii fit test for the day.
Yes, Wii Fit is extremely accurate.
You need to change your Country to one that uses Imperial (USA) in the Wii Setup Menu.