I actually bought a set type thing that included 1965-1998 both P and D BU. (Minus '82 and '83 ofcourse)
No, there is no wear and no polishing. The best of the SMS (Special Mint Set) coins from 1965-1967 were very close to Proof in quality. That 1967 is a particularly choice example.
Probably not. They would have to grade 68 or better to cover the grading fees. A capsule is a good idea. Maybe an acetone bath to knock the dust off.