What is potential energy

Potential energy is energy that is stored – or conserved - in an object or substance. This stored energy is based on the position, arrangement or state of the object or substance. You can think of it as energy that has the 'potential' to do work.

Potential energy is the energy possessed by a body by virtue of its position relative to others.

Explanation:

potential energy can also be defined as the energy that is stored in an object due to it's position relative to some zero position

probably not the "magnets"in the magnet, so to speak, are thought to be electrons orbiting in shells. vurrent loops two sides to the loop

electric field is a function of 1/r^2

yes, the force per unit charge for a point charge is inverse square law.