1) Sommerfield's quantum free electron theory treats electrons inside a solid as particles confined in a box. This leads to quantized, discrete energy levels for the electrons described by the Schrodinger equation.
2) The highest filled energy level at 0K is called the Fermi level, and its energy is the Fermi energy. In 3D, the Fermi energy and wave vector depend on the electron density.
3) The density of states and Fermi-Dirac distribution describe the probability of electrons occupying different energy levels at different temperatures. The average electron energy is calculated based on these concepts.