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Chip resistors (SMD resistors) are surface-mount fixed resistors — the most basic passive component, used for current limiting, voltage division, and pull-up/down in nearly every circuit.
By power rating and board space. Typically 0402 ≈ 1/16W, 0603 ≈ 1/10W, 0805 ≈ 1/8W; leave power margin to reduce heating and drift.
±5% is fine for non-precision uses like current limiting or pull-ups, but voltage dividers, references, and gain-setting should use ±1% or tighter.
Yes if tolerance, power rating, and TCR are equal or better. PartsPlan compares case size together with electrical specs to suggest compatible parts.