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1. The distance between the peaks increase as the balloon expands.
2. The wavelength of the electromagnetic radiation increases and its frequency decreases.
3. Should look the same if the distances remain constant with no expansion or contraction of the universe.
4. Redshift end means the shift of a radiation to lower energy or lower frequency or higher wavelength. Red forms the lower energy /higher wavelength side of the visible light compared to blue.Analogous to that redshifted radiation means that the wavelength has gotten larger than what it was before.The expanding balloon was the cause of the increase in distance between the waves drawn on the balloon. Similarly as time goes the redshift of the em radiations suggest that the universe also is expanding with time.
Please let me know if you need any clarification. I'm always happy to answer your questions.