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I am not completely sure, and someone else can probably explain it better but I think that EPS is a vector graphics format. I am pretty sure that both Photoshop and Illustrator can open them and that they are scalable. I am pretty sure that if you bring an .eps file to a printing place they can print it.
For your second question. I believe there are some expensive tools to do this (not sure though). But other than that, you can try to manually recreate with vectors and gradient meshes in Illustrator
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