Question #1- yes but I think TBIII is better. It is more water resistant.
#2- You can use the TB on the backing. If the yellow color isn't acceptable use Elmer's white glue. It dries relatively clear and will work fine for a cloth backing on a bow.
#3- you can probably use glass cloth and resin but it is not necessary. Once the glue soaked cloth cures out and you get a finish on it, it will be protected.
An ELB style bow isn't appropriate for red oak in my opinion. You can make one but the a flat bellied bow is more appropriate for red oak. A more compression strong wood would be more appropriate for an ELB style bow. You could easily make a 62", 42#@26" American longbow(ALB) or flat bow with red oak.