Cervical spine MRI result: c3-4 bi-posterolateral osteophytosis seen encroaching on corresponding exit neural formina, is this serious or do damage?

See below. Mri's often show findings that are not necessarily causing a patient symptoms. The area you are describing would likely cause pain in the back of your shoulders. If you are having these symptoms i would discuss this with a spine specialist.
Possibly. You would need to have your doctor correlate symptoms and nerve conduction studies to see if surgery would be of benefit versus medical treatment. A neurosurgeon usually performs this type of operation.