(a) Fossils provide evidence of evolution. A fossil bird called Archaeopteryx, which lived in the Late Jurassic Period around 148-150 million years ago, had feathered wings like that of birds and a long bony tail, jaws with sharp teeth and various skeletal features like that of reptiles. Thus, Archaeopteryx is considered a connecting link between reptiles and birds.
Some dinosaurs had feathers that provide them insulation in cold weather; however, they could not fly using those feathers. Birds seem to have later used feathers to fly. This, of course, means that birds are very closely related to reptiles because dinosaurs were reptiles. Hence, it suggests that birds have evolved from reptiles.
(b) While making groups, we need to decide the characteristics that are responsible for the more fundamental differences among organisms. The characteristics that account for the broadest divisions among living organisms should be independent of any other characteristics in their effects on the forms and structural functions of organisms like cellularity, mode of nutrition and nature of cell.
Insects, octopus and planaria are invertebrates; they cannot be grouped together with vertebrates, as they lack an internal skeleton with a backbone. Also, all of them belong to different phyla on the basis of different characteristics they possess. Just on the basis of one characteristic, i.e., presence of eyes, these organisms cannot be grouped together.