When you test you take the first, if you pass you can take the second - no extra charge. Same with the third level.
It is easy and inexpensive. For a starter radio, as low quality as they are, a Baofeng UV-82HP is the way to go. Find out if you like it, use it and have anyone in your area to to talk to before spending the big bucks. I went more than a year with the cheap radio, learned who is in the community and which repeaters I want to use and finally put down the money for a decent mobile radio.