You purchase a router in ether wireless or wired for your PS3 or you can connect wired with an ethernet cable directly between Cable or DSL modem and the back of your PS3. Routers allow you to split your internet connection and provide a connection to multiple devices like to your PC, PS3, Smart TV, and a laptop. Routers can be wired with output ports for ethernet cables or wireless for WiFi connections and those normally include outputs for wired connections. They are installed by plugging a ethernet cable from it's input into your modem's output.
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A router is not part of the PS3 hardware, you must purchase a router if you need one.
You can forward ports on your router for your PS3's IP, add the PS3 to the router's DMZ, or (although just this isn't the best fix in my experience) turn UPnP on on your router
You can use a wireless connection if you have a wireless router
Yes
The button is on your router