Do i level up if i make a giveaway with this game?

Looks like you cannot do a giveaway for it anymore... and if you could, it would have been valued 0 points anyway.
By the way, level 1 doesn't have any strict requirement, any game would work, as long as a giveaway can be made for it.
Provided you don't regift a previous win. Should you ever get a game you cannot activate, mark it as not received, send it back to the creator, and agree to a re-roll.

You can't give away free games. It has to be something that was never given away free before. You can check level's here.

Welcome to Steamgifts.
May I suggest you read the FAQ & guidelines (maybe even the ToS), to prevent rookie mistakes.