peripatetic

I know this has been covered extensively here, but I have a few very specific question. This is for an 80s Univega that's actually a nice frame with the paint chipped away in tiny bits everywhere. I'm trying to clean it up to sell, and I've polished and waxed the whole thing, and but for all the tiny divets chipped away, it's a beautiful, deep blue color.

I'm wondering:

1. if the standard touch-up paint that has been suggested here before (I can't remember the name, but I've seen it at the store) can be color-matched?

2. if so, will using it after prepping the rust spots help in protecting the frame itself?

3. does one spray and sand a bit to try and "blend" the touched-up spots with the surrounding paint?

4. should I cover the touch-ups with some type of clear "varnish," also?

thanks. I ask here because I figure that most people in the C & V section has more experience/interest in the topic. As I think of it, the answers will help me with a Raleigh Super Coarse that has a sort of "rash" of superficial rust, too.