The song I want to learn is American Soldier by Toby Keith. I found a tab on UG here is the link:

At the top it says "*capo 2*". Does this mean I put the capo on the second fret?

Where do I go from there? Like does the Capo take the place of the nut and jdo I start with a G note formed just like normal except using the position of the capo as the nut?

Sorry if this is a noobish post.
is it possible to play this song with a pick or does it absolutely have to be fingerpicked to be done correctly?

Reason I am asking is I don't really know how to fingerpick. When I listen to the song I am assuming that is how he is playing it.

Could somebody make a video of themselves playing it so I can see how it is done? All the music videos I can find are either too blurry to tell or they are the actual music video that doesn't show him playing.

Also I noticed there is two guitars involved. Is it even possible to play this song with only one guitar?
You could just strum the chords with a pick if you like. You dont have to play it like him if you dont want to or cant. you should learn to fingerpick at some stage tyhough cos its fun and produces a different tone, and theres probably a million reasons more why you should.