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My group is debating over who can and cannot make Spell Completion and Spell Trigger items (eg. Wands, and Scrolls), and whether it's actually necessary for the item maker to be able to cast the spells in question.

The key point in contention is the bolded text below.

Magic Item Creation

Note that all items have prerequisites in their descriptions. These prerequisites must be met for the item to be created. Most of the time, they take the form of spells that must be known by the item's creator (although access through another magic item or spellcaster is allowed). The DC to create a magic item increases by +5 for each prerequisite the caster does not meet. The only exception to this is the requisite item creation feat, which is mandatory. In addition, you cannot create potions, spell-trigger, or spell-completion magic items without meeting their spell prerequisites.

Based on this, our contention is that either

a) The character making the item (ie the one with the Item Creation feat) must be a spellcaster who has the spell on his/her class spell list or
b) The character making the item can collaborate with another spellcaster to cast the spell, or use a scroll or wand containing the spell (eg a cleric can ask a wizard with Scribe Scroll to write down his prayers).

Can anyone point me to a definitive answer for which answer is correct?

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The rules are actually fairly clear cut when it comes to this:

Magic Ammunition and Breakage: When a magic arrow, crossbow bolt, or sling bullet misses its target, there is a 50% chance it breaks or is otherwise rendered useless. A magic arrow, bolt, or bullet that successfully hits a target is automatically destroyed after it delivers its damage.

As such, if you miss a target with the Returning Ammo, roll the 50% chance. If the ammo survives, it returns to your hand at the start of your next turn. If not, it's destroyed and all its magic is lost.

Magical ammunition is made to be destroyed, which is factored in by the fact that you make 50 of them for the same cost of enchanting a single normal weapon.

As you'd have to pay a minimum of 8.3k gp (inclusive of Masterwork) for Returning Ammo, most people who go down this path usually load other more useful abilities (eg. +1 Merciful or Wounding Shurikens) instead.