1.
Quote:
localns1 IN A 10.101.17.79
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Means that localns1.fion.co.in resolve to 10.101.17.79
Quote:
Does that mean that additional host name localns1 which is now defined in the zone file could also be defined in the /etc/hosts file as
10.101.17.79 bssossapp01 localns1.fion.co.in
where bssossapp01 is the hostname of the machine?
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Note that /etc/hosts is used locally. Other computers use the dns entry, so if you want that bssossapp01 localns1.fion.co.in is resolved by others, you need to add an entry for it in the zone file.
2. Yes, it doesn't matter if the email address is not-existent
But it's better to give a real email address, as this is where a notification will be sent if something goes wrong.
3. Again as above it doesn't matter if the MX host is existent. In fact you don't even need to have a MX record.
It is only needed if you want to supply a mail server for the domain in question.