In aramaic there is no ambiguity with the word , only in Greek. So the story could not happen in the way it happened, in such a case (i.e. if aramaic language was used).
Sure it could have. Nicodemus heard the word born and went off in the only direction he knew - worldly things. That's evident from Jesus' response when he admonished N. for thinking worldly things when Jesus was speaking about spiritual things - "You're a teacher of Israel and don't understand the spiritual realities I'm talking about?"