For your second query about citizenship, Italy does allow grandparent's nationality to be passed down, but under strict conditions. Basically, your stepdaughter's grandmother must have been an Italian citizen (not given it up) at the time of her father's birth. If that's the case, then her father will first have to establish his Italian nationality, and assuming that is successful (not an easy process as getting documentary proofs acceptable to the Italian authorities isn't straightforward), she can then apply for her Italian citizenship on the basis of her father. She will have to apply to her nearest Italian consulate for documents required, as they differ from consulate to consulate. Everything has to be officially translated into Italian and certified with an apostile, where appropriate. Apart from basic principle, there are a lot of details which can determine the success or otherwise of her application, and it will be a long drawn-out affair (many people requiring several years for the process). Her consulate can advise on this.
If she eventually obtains her Italian citizenship, they need to go and live in Italy or work for Italian government or organisation for several years before her husband can be naturalised. There may be a requirement to speak reasonable Italian. She also needs to check whether getting another nationality may affect her existing citizenship.
