»Architects Speech - Matrix Reloaded«

Hi all,

I'm new to this site and was hoping some of you clued up guys can answer, what probably are simple/silly questions for you.

Ok, after the architects speech in Matrix Reloaded, he talks about the systemic anamoly causing a problem for the matrix, and how there have been several versions of this matrix. He also mentions a solution, a 'intuitive program' where 99% of test subjects accept the matrix.

What happens to the remaining 1%. Do they get dumped into zion? or killed?

How is the matrix supply of humans continued? Are they bred by machines?

What is the purpose of zion existing to repopulate and start another rebellion, if the machines cannot program any Zionists into the matrix?