1. I believe Ipad 2 is the latest model but I see no designation online stating that the mini is Ipad 2. Does that only apply to the 10" model?
The iPad Mini comes in two flavors: Retina (2nd Gen), and Non Retina (1st Gen)
2. I've read portions of the book "Ipad for Dummies" and didn't see anything related to security. Does the Ipad Mini include a firewall and/or some sort of malware protection? If not, can an anti-malwsare program be installed?
Yes....
3. If I desire to use a different browser than the one installed (I believe it's Safari) can I download and install the Chrome browser?
Yes....