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The best answer is that how this works is up to what your GM and group is comfortable with. The words “depending on your species’ biology” leads me to believe that you are restricted to characteristics already present in your species, however. It does not grant any bonuses to stats or skills. It’d be a heck of a lot more expensive if it did.
I know this is a bit of an old thread, but I am new to starfinder, though I am a veteran pathfinder GM, and I really just want to point out how much I love this item, I am gender fluid, and most days I identify somewhere between the genders, or as a mix of them, so having an item that specifically allows me to play characters that share my identity and can do more about it than I can is great. In answer to your question, 1 the wording of the item is left purposely vague so that you can interpret it either way, arguably you could also get extra genitals or sex characteristics of any sex of your race, you could mix and match, or take all, or go for the androgynous no secondary sex characteristics archetype, 2 no it is specifically within your race, but work with your GM if that is something you want, you could have a rarer, quest related item that could do that, and 3 eh? if someone wants giant boobs or a giant member then that is their prerogative, it would not grant actual stat boosts but as long as your GM is ok with it, who are we to judge