Actually, we're now in globalized world of 21st century and people no longer communicate using ASCII only so when anwering question about "is it letters only" you need to take into account letters from non-ASCII alphabets as well. Python has a pretty cool unicodedata library which among other things allows categorization of Unicode characters:
As you can see the whitelisted categories can be quite easily controlled by the tuple inside the function. See this article for a more detailed discussion.
(2) Please check below program for your reference:-
str = "this"; # No space & digit in this string
print str.isalpha() # it gives return True
str = "this is 2";
print str.isalpha() # it gives return False