Hi Anuvrat
1. You can, but you have to ask why do that? If you have crystalline material you should refine over a longer r-range. From 1.7 to 6 Å you usually have so few peaks that any model will give a good fit. I would always do at least 1-10 if I am trying to refine the local structure of a crystalline material.
2. I would not agree that 89.6834 (error: 0.72) is a large error. However generally errors in PDF fitting is tricky. You have to be very careful with error propogaton from your initial integration of the raw scattering data, then following corrections and the Fourier transform. I do not know how you made your PDFs, but in general your errors are likely not that trustworthy anyway. Rather make sure your fit is visually good, the structure is physically reasonable and redo the fit multiple times to see how much the different parameters change.
3. The only real way to reduce experimental errors is to get better data. However as mentioned in 2 your error likely stem from wrong error propagation.
Cheers Mikkel