Baltika, the war axe is useless for cutting wood.
1) A. These guys are relaxed, they don't seem violent. We have skill at trading, so let's trade. At the very least, we'll get a glimpse of what they're like.
2) A. I'm an optimist, I think these guys are not dangerous. Worse yet, I think if we attack them and kill them, one of their trackers are definitely going to try tailing us. These guys know the lay of the land, we don't, we can't beat them on those terms.
3) A. Swords are more useful against unarmored opponents, plus the family sword probably has some cool history behind it. Kinda shitty as a hunting weapon, but what are ya gonna do?