1. Alfresco Content Services 7.0 Documentation, "Configuring Smart Folders": This official documentation explicitly states the default configuration.
Reference: "You can enable or disable the Smart Folders feature by setting the smart.folders.enabled property to true or false in the alfresco-global.properties file. You must restart the Alfresco server for the setting to take effect. By default, this property is set to false."
Source: Alfresco Content Services 7.0 Documentation, Administering Section.
2. Alfresco Content Services 7.0 Documentation, "Applying a Smart Folder Template": This page clarifies the permissions required, refuting option B.
Reference: Under the prerequisites for applying a template, the documentation states: "Ensure you have the correct permissions to edit the folder." This indicates standard permissions are used, not a role exclusive to Site Administrators.
Source: Alfresco Content Services 7.0 Documentation, Using Content Services Section.