Yes. You can cast any spell using a slot of the same level as the spell, or higher.

From PHB page 201, Chapter 10: Spellcasting:

SPELL SLOTS

[...] When a character casts a spell, he or she expends a slot of that spell's level or higher, effectively "filling" a slot with the spell. [...]

and, later on the same page:

CASTING A SPELL AT A HIGHER LEVEL

When a spellcaster casts a spell using a slot that is of a higher level than the spell, the spell assumes the higher level for that casting. For instance, if Umara casts magic missile using one of her 2nd-level slots, that magic missile is 2nd level. Effectively, the spell expands to fill the slot it is put into.

Some spells, such as magic missile and cure wounds, have more powerful effects when cast at a higher level, as detailed in a spell's description.

Note: In your example, you had both 3rd and 4th level spells slots remaining. You can cast Shield with either a 3rd or 4th level slot but (as there is no enhanced effect for that spell when cast at higher levels - a Shield spell is a Shield spell no matter what level it's cast at), it would be best to cast it as third level spell - keeping the 4th level slot for future 4th-or-lower level spells. Shield doesn't benefit from higher slot levels, but some other level 1-3 spells you might want to cast do.

In other words, cast it with the lowest level slot that will achieve the desired effect, taking into account any possible enhancements from casting at higher slot levels

For example, as mentioned by Mark Cogan, when casting Dispel Magic or Counterspell at higher levels, each increase in slot level increases the level of spell which can be automatically dispelled/interrupted without a spellcasting ability roll.

Similarly, Fireball can be cast using any slot of level 3 or higher - but you don't need to use a 9th level slot against a bunch of kobolds unless you have no lower-level slots remaining.

No, you can't cast it using a spell slot.

Spells you can cast because of your race aren't spells you know, and thus can't be spells you prepare. Per the PHB (p. 201, "Known and Prepared Spells"):

Before a spellcaster can use a spell, he or she must have the spell firmly fixed in mind ...

... and it goes on to describe some of the class-specific variations of knowing and preparing spells. But in any case, having a feature from your race or class that allows you to cast a spell isn't the same as knowing the spell.

This is spelled out clearly in the multiclassing rules for Pact Magic quoted in the question (PHB p. 164; emphasis mine).

If you have both the Spellcasting class feature and the Pact Magic class feature from the warlock class, you can use the spell slots you gain from the Pact Magic feature to cast spells you know or have prepared from classes with the Spellcasting class feature, and you can use the spell slots you gain from the Spellcasting class feature to cast warlock spells you know.

Likewise, the Drow Magic trait clearly distinguishes the known cantrip from the merely castable other spells (PHB, p. 24; bold for emphasis mine):

You know the dancing lights cantrip. When you reach 3rd level, you can cast the faerie fire spell once per day. When you reach 5th level, you can also cast the darkness spell once per day. Charisma is your spellcasting ability for these spells.

If the intent of the rules was that Drow also knew the non-cantrip spells, it would say so.