Go to an enchanting table and place the stone sword in the square. Then, click one of three tan boxes with green letters in them. Click one and your exp levels will be deducted on how many you have and how many you clicked on. (The green bar on top of your hotbar is your exp enchanting level) You should have an enchanted sword then.
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any where between 30 and 40
You need to enchant it at an enchanting table, and hope you get the Fire Aspect enchantment.
You can enchant items with an Enchanting Table.
You get a three block deep down hole, fill the hole with lava, and drop the sword into it. This would destroy the sword though, which I'm sure you don't want. Other than this, you can also enchant a sword with fire aspect, which won't set the sword on fire but will set mobs and players on fire when they are hit with said sword.
You can enchant bows, swords, picks, axes, swords, and all pieces armour.