1 The package will have its horizontal velocity of 500 m/hr PLUS the VERTICAL velocity which will be determined by the airplane's height...which is not given.... Need more info but it will be more than 500, so I think the last choice is best....
2 The vehicles are approaching each other at 60 + 40 = 100/m/s
to cover 800 m will require 800 m / 100 m/s = 8 seconds to metal-bending
NOW, you should be able to calculate how far the fly can travel in 8 seconds....yah?