I have few questions regarding ListTransaction RPC call and I hope you can help me.

Documentation for the RPC call is here:

1. What does it mean for a transaction ( with 0 confirmations ) to be trusted or not?

There is such field in the response of ListTransaction

As far as I know bitcoin - nothing is trusted unless there are some numbers of confirmations.

How does this value is set to true or false?

2. When does confirmations can be -1 ( conflicted )?

What does it mean to have conflicted transaction?

Is it about Transaction Malleability? Double Spend? or both?

3. walletconflicts. What if I add watch-only address to my bitcoind process.

This address will not be a part of my wallet.

Now, someone will pay me to this address and someone else will make Transaction Malleability ( for the sake of example, lets assume this second one will be confirmed, not the original one ).

Will I get a first transaction in walletconflicts array when ListTransaction will return me second transaction in the response?

Thank you in advance!