No, Blastoise is not a legendary pokemon.
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The legendary dog which you face will alway be typed to be at an advantage against your starter. Therefore, if you started with Squirtle (which becomes Blastoise), then the dog you will face is Raikou. (Bulbasaur=Entei; Charmander=Suicune)
Yes, but you must breed it with a Ditto, if you can find a Ditto, you can breed every other Pokemon with it except for legendary Pokemon, including Heatran, Latias, and Latios, who all have genders but they are unbreedable.
It is a rare pokemon, but it is not a legendary pokemon
Blastoise, Dragonite, Zapdos, Tyranitar, Alakazam/Mewtwo, Moltres/Arcanine
Unknown is not a legendary Pokemon but it is considered rare. Legendary Pokemon are one of a kinds.