SharePoint Office 365 development

We want to do some POC on SharePoint Office 365 development so that with same expertise later we can develop for our customer. Here I have few question on this:
Can we use SharePoint Office 365 development for Farm level deployment ?
Or SharePoint Office 365 is used exclusively for development of Apps ?
Is Napa tool necessary for Farm level solution? (I know it is required for Apps development)
Basically we want to develop farm solution not any apps, can we use SharePoint Office 365 for this?
Can we develop office 365 application in a virtual machine without any internet connection i.e. without connecting to the web or Microsoft online? 
Thanks in advance for your reply.

Answers for your questions
1. Can we use SharePoint Office 365 development for Farm level deployment ?
Answer : No. Only Sandbox
2. SharePoint Office 365 is used exclusively
for development of Apps?
Answer : No. It also supports for .Wsp with some restrictions on code
3. Napa
tool necessary for Farm level solution? 
Answer: Office 365 doesn't support Farm Solution.
Apps only run in different context or web.

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