1. You're fucked. The end. It doesn't matter whether you were using mysql, postgres, or sqlite3, or S3, or Redis, or any other server your app was connecting to: they can just look at your environment vars.
That's not going to happen "because you're using Sqlite3", that's going to happen because you used some obscure server software, or worse, rolled your own.
People really do seem to put too much faith into "it has a username and password, it's more secure". It's not: if someone has access to your actual server, they have access to everything your server has access to. Sqlite3 is no more or less secure than a dbms daemon (or remote) in that sense.