Where do you think you are, the library of Alexandria?
You can do that at home.
The inscription is in Arabic. You’ll have to find someone to read it for you.
Go ahead. Study it for as long as you like.
The buildings to the north and east do seem to have some connection with the Palace complex (you learn later they’re the residences of the Sultan's grown sons).
But you should explore the central Palace complex first… mainly because I haven’t made the game that big.