I am posting these notes following a request for further information regarding this question. Should not affect the OP's choice of answer.
Notes added in proof:
On the meaning of quantum coherence:
Quantum coherence is a direct extension of the classical concept of wave coherence. Two classical waves are said to be coherent if they can produce a well-defined interference pattern. In order for this to happen, for instance with electromagnetic waves, the two waves must have the same frequency and a constant phase difference, such that when they add/superpose/overlap the resulting wave pattern remains well-defined. This is how coherent sources were first defined in optics.
In contrast, incoherent optical sources, even if monochromatic, produce an ensemble, or statistical superposition, of light waves with random relative phases (and polarizations, to be precise), which do not/cannot interfere which each other. To get an interference pattern one must first isolate a single coherent component and use it to set up coherent sources, such as the two slits in the famous double-slit example.
When electron interference patterns were first detected, it made sense to interpret them in the same terms as optical interference, and the concept of coherence transferred automatically to superpositions of wave functions and quantum states in general. So did the concept of incoherent statistical ensemble.
So, in general a coherent quantum state means a coherent superposition that can produce interference patterns (there is also a more specific notion of "coherent states", as in those of the harmonic oscillator, please do not confuse the concepts). For this to happen it must be a pure state $|\psi\rangle$. If such a $|\psi\rangle$ is expressed as a superposition of two other states, say $|\psi\rangle \sim |0\rangle + |a|e^{i\theta}|1\rangle$, then it implies a well-defined relative phase (or phase difference) between states $|0\rangle$ and $|1\rangle$, even if the superposition amplitude $|a|e^{i\theta}$ changes in time. See some good explanations along these lines in answers to this related question.
On the other hand, the concept of incoherent superposition evolved into that of mixed state, described no longer by a state vector $|\psi\rangle$, but by a positive definite state operator $\rho$. A mixed quantum state $\rho$ is understood in two distinct ways that are equivalent as long as the overall dynamics remains linear (yes, nonlinear dynamics would distinguish between the two):
Following the optics analogy: as an incoherent superposition of coherent states, or in quantum theory terms, as a statistical mixture of pure states. That is,
$$
\rho = \sum_{k}{p_k |\psi_k\rangle\langle\psi_k|}
$$
where $p_k$ is the probability of pure state $|\psi_k\rangle$, $0\le p_k\le 1$, and the states $|\psi_k\rangle$ need not be mutually orthogonal (in which case they are not the eigenstates of $\rho$, those are different and always exist!). This sort of statistical mixture is equivalent to a physical ensemble of identical quantum systems (copies), each in some pure state $|\psi_k\rangle$. In this case $p_k$ represents the frequency of copies in the respective $|\psi_k\rangle$.
As the reduced state of a subsystem of a larger quantum system that is overall in a pure state. This definition gives an intrinsic quantum meaning to mixed states, and relies in turn on the concept of entanglement.
Formally, a joint pure state of two systems $A$ and $B$ is entangled if it is not a direct product of "local" pure states, that is, $|\psi_{AB}\rangle \neq |\psi_A\rangle\otimes|\psi_B\rangle$. Conversely, if $A$ and $B$ are in a joint pure state, then they are disentangled if and only if each of them is in a pure state and $|\psi_{AB}\rangle = |\psi_A\rangle\otimes|\psi_B\rangle$. The latter is called a separable pure state.
The operational meaning of a separable pure state $|\psi_{AB}\rangle$ is that measurements of any two "local" observables $O_A$ and $O_B$ are statistically_uncorrelated_, in the sense that the average of a product $O_A O_B = O_A\otimes O_B$ equals the product of the averages,
$$
\langle \psi_{AB}| O_A\otimes O_B |\psi_{AB} \rangle = \langle \psi_{AB}| O_A |\psi_{AB} \rangle \langle \psi_{AB}| O_B |\psi_{AB} \rangle
$$
or equivalently, that the statistical correlation of $O_A$ and $O_B$ is null,
$$
\langle \psi_{AB}| O_A\otimes O_B |\psi_{AB} \rangle - \langle \psi_{AB}| O_A |\psi_{AB} \rangle \langle \psi_{AB}| O_B |\psi_{AB} \rangle = 0
$$
On entanglement and loss of coherence:
From the above it follows immediately that a joint pure state is entangled if and only if it produces non-vanishing correlations for at least one pair of "local" observables. In this case we know with certainty that neither $A$ nor $B$ can be in pure states, since otherwise the state would be separable!
But now we can also see an interesting relation between entanglement and coherence, which answers questions 1 & 2:
An entangled pure state is by all means a coherent state, generally a coherent superposition of separable pure states of two or more subsystems. Yet the individual subsystems can no longer be in coherent, pure states themselves. This is what Chris Drost pointed out when he wrote that entanglement is paradoxically responsible for loss of coherence. Coherence is necessarily lost within individual entangled subsystems because they cannot be in coherent states, but at the same time correlations between subsystems keep the total state coherent.
Things get somewhat more complicated as soon as we acknowledge that entangled states may also be mixed states themselves, but this is the general idea.
In order to give any simple example we need to complete the 2nd definition of a mixed state above and see what becomes of the "local", reduced state of an entangled subsystem. The following derivation hopefully emphasizes the connection to basic probability rules. Let the total entangled state be $|\psi_{AB} \rangle$, or equivalently $\rho_{AB} = |\psi_{AB} \rangle \langle \psi_{AB} |$, and let $O_A$ be any arbitrary observable of $A$, with eigenbasis $\{|j_A\rangle\}_j$ and corresponding eigenvalues $\omega_j$. Also let $\{|k_B\rangle\}_k$ be an arbitrary orthonormal basis set of $B$. The average of $O_A$ in state $|\psi_{AB} \rangle$ is
$$
\langle \psi_{AB} | O_A |\psi_{AB}\rangle \equiv \langle \psi_{AB} | O_A\otimes I_B |\psi_{AB}\rangle = \sum_{j,k}{\langle \psi_{AB} | j_Ak_B\rangle \omega_j \langle j_Ak_B|\psi_{AB}\rangle} = \\
= \sum_j{\omega_j \sum_k{\langle \psi_{AB} | j_Ak_B\rangle \langle j_Ak_B|\psi_{AB}\rangle}}
$$
The meaning of the last expression is quite transparent, since the sum over $k$ gives the total probability $p_j$ that subsystem $A$ is in state $|j_A\rangle$ while $B$ is in any of the basis states $|k_B\rangle$. Let us rewrite this probability slightly differently:
$$
p_j = \sum_k{\langle \psi_{AB} | j_Ak_B\rangle \langle j_Ak_B|\psi_{AB}\rangle} = \sum_k{\langle j_Ak_B|\psi_{AB}\rangle\langle \psi_{AB} | j_Ak_B\rangle} = \\
= \langle j_A| \left[ \sum_k{\langle k_B|\psi_{AB}\rangle\langle \psi_{AB} | k_B\rangle}\right] |j_A\rangle
$$
Notice that this time the expression in the square brackets is independent of the eigenbasis $\{|j_A\rangle\}_j$ and therefore of the choice of $O_A$. If we denote it as
$$
\rho_A = \sum_k{\langle k_B|\psi_{AB}\rangle\langle \psi_{AB} | k_B\rangle}
$$
we obtain that the total probability to have subsystem $A$ in any state $|j_A\rangle$ is given by
$$
p_j = \langle j_A| \rho_A |j_A\rangle
$$
and that the average of $O_A$ amounts to
$$
\langle \psi_{AB} | O_A |\psi_{AB}\rangle = \sum_j{\omega_j \langle j_A| \rho_A |j_A\rangle} = \sum_{j}{\langle j_A|\left[\sum_{j'}{|j'_A\rangle\omega_j \langle j'_A|}\right] \rho_A |j_A\rangle} = Tr_A(O_A\rho_A)
$$
It can be easily verified that the entity $\rho_A$ is in fact a hermitian, positive definite operator on the Hilbert space of $A$. In addition, since the $p_j$'s must sum up to $1$, $\sum_j{p_j} = \sum_j{\langle j_A| \rho_A |j_A\rangle} = 1$, we also have that $Tr_A\rho_A = 1$, a property that is again independent of the basis $\{|j_A\rangle\}_j$. In other words, $\rho_A$ is a density matrix that encapsulates all information about the statistics of subsystem $A$, regardless of the state of $B$. It is said that the information on $B$ is averaged out.
Furthermore, we can rewrite $\rho_A$ as
$$
\rho_A = \sum_k{\langle k_B|\psi_{AB}\rangle\langle \psi_{AB} | k_B\rangle} = \sum_k{\langle k_B|\left[ |\psi_{AB}\rangle\langle \psi_{AB} |\right] | k_B\rangle}
= \sum_k{\langle k_B|\rho_{AB} | k_B\rangle}
$$
or
$$
\rho_A = Tr_B\rho_{AB} = Tr_B\left(|\psi_{AB}\rangle \langle \psi_{AB}|\right)
$$
The latter expression is the one we want to keep, since it can be shown that it is independent of the choice of basis $\{|k_B\rangle\}_k$.
The density matrix $\rho_A$ describes the reduced state of subsystem $A$. Similarly, the density matrix $\rho_B = Tr_A\rho_{AB} = Tr_A\left(|\psi_{AB}\rangle \langle \psi_{AB}|\right)$ describes the reduced state of subsystem $B$. Show as an exercise that the average of any observable $O_B$ of $B$ is given by $\langle \psi_{AB} | O_B |\psi_{AB}\rangle = Tr_B\left( O_B\rho_B\right)$ :)
The above is all that is needed for a basic understanding of various examples of coherence and entanglement. For instance:
Any pure state $|\psi_A\rangle = \alpha_0|0_A\rangle + \alpha_1|1_A\rangle$ of system $A$ is a coherent superposition showing interference between pure states $|0_A\rangle$ and $|1_A\rangle$.
Same goes for states $|\psi_B\rangle = \beta_0|0_B\rangle + \beta_1|1_B\rangle$ of $B$.
States $|\psi_A\rangle\otimes|\psi_B\rangle$, $|\psi_A\rangle\otimes|0_B\rangle$, etc, are separable pure states such that both $A$ and $B$ are each individually in coherent superpositions of pure states. Interference experiments on $A$ alone will show the same interference patterns as in the absence of $B$, and vice-versa.
Entangled states $|\psi_{AB}\rangle = \gamma_0|0_A0_B\rangle + \gamma_1|1_A1_B\rangle$ of the joint system $A$-$B$ are coherent with respect to joint pure (and separable) states $|0_A0_B\rangle$ and $|1_A1_B\rangle$. That is, a joint interference experiment on $A$ and $B$ produces an interference pattern. But now the "local" state of $A$ alone is described by the reduced density matrix
$$
\rho_A = Tr_B\left(|\psi_{AB}\rangle \langle \psi_{AB}|\right) = Tr_B\left[ \left(\gamma_0|0_A0_B\rangle + \gamma_1|1_A1_B\rangle \right)\left(\gamma^*_0\langle 0_A0_B| + \gamma^*_1\langle 1_A1_B| \right)\right] =\\
= |\gamma_0|^2 |0_A\rangle \langle 0_A| + |\gamma_1|^2 |1_A\rangle \langle 1_A|
$$
and it is an "incoherent" mixed state: it does not produce an interference pattern by itself ("locally"), or when the interference experiment erases all information on $B$. Notice that $\rho_A$ is the intrinsic reduced (local) mixed state of $A$ when the total entangled state is $|\psi_{AB}\rangle$. No additional measurement needs to be performed on either $A$ or $B$ to bring $A$ in state $\rho_A$. Check as an exercise that the same goes for $B$.
Finally, a very brief answer to question 3: Yes, decoherence understood as loss of coherent superposition involves entanglement and/or a dissipative dynamics in the presence of another system (measurement apparatus, environment, etc). Sometimes though it may mean loss of phase coherence under internal interactions.