For question 1, "What does Diana Dabby's 'chaotic variation' scheme do?"
It maps a piece of music onto a chaotic attractor and uses that mapping
to generate variations on that piece.
So the second answer is correct.
For question 2, "Chaotic variations on dance sequences that are generated by
Josh Stuart's chaotic variation scheme look exactly like the originals."
This is false. They look very similar to, but not exactly the same as,
the original dance pieces.