1. I am visually handicapped but not enough to use accessory options.
How do I increase size of panel fonts? This function is not in panel properties nor does it seem to be in System < Preferences < Font.

2. I have never understood the workspaces. If I click on workspace 2, 3, or 4 nothing happens: I'm still where I started from, #1 default.
So where are the workspaces?? Please give me a concrete example of a typical use of another workspace with sample steps to follow.

It is in the Fonts preference menu.

If you increase the 'Application' font, the font size in the panel will increase too.

I don't fully understand what you mean with the question about the workspaces. You have 4 seperate desktops where you can keep apps. For example, open up your browser on the first, email client on the second etc. I think the default shortcut to switch between workspaces is Ctrl+Alt+Arrow.

This way you do not need to keep all your apps on one workspace and minimize one when you want to user the other. You can just switch workspaces.