UK Immigration Law
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Yes, that is an option. If you are applying for a fiancé visa then you really must instruct a solicitor to prepare the application for you. It is much more complicated that a visitor's visa application.
That is correct. The fiancé visa would be granted for an initial 6 months so that she can come to the UK, marry you and then apply to switch (in the UK) to a spouse visa. You cannot extend the fiancé vias so, yes, there is an effective 6 month time limit within which you must marry and then make an application to switch to a spouse visa.
She cannot work on a fiancé visa but once the spouse visa has been issued she is free to work without restriction.
I am going out for the evening now, please rate my answer and I will respond to any further queries you have first thing tomorrow morning.