Answer:
(1) Ordinal
(2) Such data should not be used for calculations such as an average.
Explanation:
Given




Solving (a): The level of measurement
When observations are presented in ranks such as:



The level of measurement of such observation is ordinal
Solving (b): What is wrong with the computation?
Ordinal level of measurement are not numerical values whose average can be calculated because they are used as ranks.
Hence, (a) is correct