ya.

No, you can declare static variable only in static method

No, Static variables can be declared as a class attributes, 
for example,
public classA{
   static String m2="xyz"; // this is correct form
public static void main(String args[]){
        static String m1="abc"; // this gives an error 
(illegal modifier for parameter;;....)
}
}

No static variable cannot be declared within static/non-
static method.

only "final" and "default" allowed within in method for 
variable declaration. i.e u cant use 
private,protected,public,static within method .it display 
the compile time error "Illegal modifier".