Old school DW fans, I need your aid!

I know the basics of what happens at the end of War Games, but I need to know some vitally important details.

1) Do they take Jamie's key to the TARDIS before they send him back, or is it possible that he holds onto it?

2) Does Jamie know about the forced regeneration the Time Lords have planned, and what exactly that means?

(has fic percolating)