1. What do Eric's band want to do?

They want to sing and dance for the elderly people.

2. What do Eric's band want to do?
It wants to sing and dance for the elderly people.

3. What do Eric's band want to do?
He wants to sing and dance for the elderly people.

(Which answer is grammatical?)

None is correct. The verb needs to be 'does' because its subject is 'band,' which is singular.