Ok, you're mixing knitting and sewing....I *think* you mean knitting here. Ladies hold yarn while knitting.
2) What do we call those two thick sticks?
3) Do we call this way of making clothes sewing?
No, not if you mean knitting.
Alternatively, for (1), you might be talking about sewing in which case ladies would hold fabric while sewing it using thread and a needle.
Not a teacher