What’s the best method to add a second language to your WordPress website?

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I have a website in English and I am looking to add a second language to it which will be Arabic. I would like to know what the best method to do so would be? Things that I would like:

1) A language switcher located in the menu bar
2) The Arabic content to be under the [domain.com/ar/]) folder or if possible, the folder in Arabic text

Some more questions:

1) How do categories work? Right now, I have [domain.com/cat/post]) as the URL structure. Do I create new Categories for Arabic and will they be under the current categories? For example, [domain.com/cat/ar/post]

2) Will my plugins and theme work with the additional language?

3) How does this affect my SEO- does Google see my site as English or Arabic?

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