Picture 1: What is this (Under passenger fender)? And what does it do?
That is your "charcoal canister" or evaporative emissions canister. They used that style from mid-'70 to about early-'76 when they changed to a higher firewall-mounted plastic tank.
The small line should come from the tank(s) via the condensing tank behind the driver's shoulder in that panel on the side.
The two large ports go up into the engine compartment. One to the air cleaner housing. The other simply to air, but up high to keep water and debris out of it.
Picture 2: Why has the previous owner capped this tube and assuming there is a better way to truly cap it if that is what should be done
Two reasons. Both legit in their way.
One is simplicity and laziness. Get it done quick, chop a hose, then insert a bolt. Done.
The other reason these days is that the vacuum caps sold today are absolute crap. They may last six months if you're lucky. After fighting vacuum leaks for who knows how long, the PO may just have given up and gone back to the old method because the hose lasts much longer than the stupid caps made for this job.
Picture 3: Tube from Picture two connects to this silver piece and not sure what this is either.
As they said, it's your vacuum advance on the front of the distributor. Find out where it goes and you'll most likely be happier by connecting it to the ported, or "timed" vacuum port on the carb.
If that's the one that's capped off with the hose-n-bolt like was said, pull that old hose off and connect the one from the vacuum advance to that port.
You will likely have to re-adjust your timing by twisting the distributor, but hard to say until you get there. Easy way to tell now would be to disconnect the hose from the distributor right now and see where your timing is.
Some prefer the hose connected to full vacuum like it looks like yours is now, but most prefer the ported vacuum signal.
You can definitely put the vacuum caps in place of any unused hoses. You just need to get good ones or get lucky.
I just replaced a couple on an engine that was built less than three years ago and only had 3500 miles or so on it.
Up to you, but let's see if anyone has a brand recommendation for a better cap.
Paul