>>1About this reality thing, I'll give you what I think.
I think that reality is what have influence over us. If you see someone you love dying, you'll be sad, so them dying is real. If you dream about people you love dying, you'll be sad too. Because you experienced the dream.
Reality is personal : if you don't know something (knowing referring to "feeling the effects of something", not just learning something) by the definition I just gave, it wouldn't be part of your reality.
As for the "real reality", it's composed of everything that was, is or will be. By developing science, we're trying to further our knowledge of this reality, but I doubt we will ever be able to grasp it in its entirety.
So, to answer your "reality is false", it can't be false since reality is something you forge yourself. I don't know if it makes sense, but it does to me.