Yes, of course, CO2 dissolves in water. haven't you heard of soda water?
yes but in soda water co2 is not dissolve but compressed and so the is effervesence of co2. It's best e.g is sea water which is soda lime or lime stone used for cement
actually soda water is supersaturated solution of water and CO2 and of course other constituents. apart from causing the fizz it also gives the drink the bubbly texture in the mouth which is the result of CO2 dissolved in water.