ILR for dependant of British Citizen

[Srinibondugula]

Hi guys,

My wife's Visa is due to expire in 09/2014( she joined me on settlement visa on 02/07/2012issued in India). She is eligible for ILR as a partner of British Citizen now. But the application form that should be used is little confusing( I got my ILR in 2011 after switching from Tier 1 General).

1) Should it be SET(M) or SET(O)?
2) although the Gov website says that there is no minimum salary criteria, are there any standards we need to meet? Being self employed, We pay ourselves 1300£ a month(650 for my wife and 650 for myself) as salary and rest some decent amount as dividends. Would it be any problem if we present the case as just 1300£ Per month for the last 12 months?
3) English language requirement - Last time when my wife was issued a visa, we submitted a medium certificate of her bachelor degree stated that the course was taught in English. They accepted it and the visa was issued. Now there is a similar requirement for ILR visa and I'm wondering if the same certificate would suffice. There shouldn't a prob as such but just in case I'm thinking to get a certificate from Naric. What would be your advise?

Appreciate your patience and responses please..

Thanks,
Srini