What tool do I use to make the color wheel? The easiest is the polar grid, but you can just divide a circle, too. Use the live paintbucket to fill in the colors.
Do the colors in the color wheel have to be exact? There really isn’t an exact, since there is a range of all hues. But you need to tell the difference between all hues.
For the swatch sets, how do I choose which colors to use? Start with any one hue on the color wheel and make the set. Then for the second set, use that hue plus the complement. For the third set, use that hue plus two analogous hues.
How big should the swatches be? Any size, just make it look neat and organized.
How do I create tones? Add gray to your hue, a little at a time. Basically in the diagonal direction in the color picker.