Hi Ann
No, you don't have to answer all 37 questions. what you do have to do is demonstrate your knowledge and understanding of those 37 questions. You can do this through, say, doing an assessment plan with your candidate which will cover questions 21, 11, 14, 17, 19, 3, 5 & 8, some to a greater or lesser degree depending on what you include in the assessment plan. Some of the questions that ask "explain" or "describe" you will probably have to answer but most can be covered by evidence as described above.
HOWEVER some assessors and training providers are not so confident in their assessment practice and will ask you to write them all - challenge them!
As far as drawing up an assessment plan goes, there are many about in various forms and your training provider will have its own that it will want you to use. Buying a book is a waste of your hard earned cash. I think I'm right in saying that you already have an NVQ so you will have been through the same process then (I hope!)
The principles are that you look at each unit in turn, discuss with the candidate how frequently he/she does the tasks in the PC's, how can evidence be provided to cover the PC's and whether any additional training/experience is required before the unit is assessed. This process will help focus the candidate's mind on how to approach obtaining evidence for each unit.
Beware! If the candidate seldom carries out the PC's in a unit, it's probably the wrong unit.
Using the above as a starting place, you can then plan what you are going to cover during each visit (one at a time, don't plan the whole lot in one go). Record the date, time and location of your next visit. Detail what you are going to assess during that visit and what you expect your candidate to have completed.(could be a reflective account for a particular activity or an observation etc)
At the following visit, carry out what you have planned, giving feedback to your candidate on the work completed and your assessment decisions and then plan your next visit based on progress made. Make sure that your feedback and assessment decisions are written down and not jut given verbally. I like to write feedback on the pieces of evidence, particularly at the beginning, as this motivates your candidate i.e. "that was a very good first attempt at a reflective account. we could have got even more evidence if you had put more detail in. Well done!"
Hope this helps.

Dave