Please note that we don't do students' homework for them. Be sure to go back into your textbook or use a good search engine. http://hanlib.sou.edu/searchtools/
Once YOU have come up with attempted answers to YOUR questions, please re-post and let us know what you think. Then someone here will be happy to comment on your thinking.
I have seen term papers written on this subject. They usually are of low quality, for one reason: It is difficult to form a chohesive thesis, and defend it. The papers usually become opinion papers, using religious texts as supporting evidence.
I recommend you rethink your subject, and do some "soul" searching on what would a viable thesis be.
If you are stuck on this, consider the following:
a. historical arguments on what is separation of church and state (ie, the constitutional prohibition of the state establishing a religion)
b. the possiblity of making a "prayer" which is not favorable to any religion (ie, a prayer which is acceptable to Christian, Muslim, Jewish, Buddists, Hindus, native Americans, ...)
c. What is the purpose of prayer in the schools? Does it serve and educational or "other" purpose?
So I hope you see what I am suggesting...try to limit your subject to something that can be analyzed, supported, or dissected. That is the purpose of a term paper, usually.