No, this is not a ring counter. The 1st flop toggles every cycle, which gets 1 every 2 cycles. How could it be a ring counter when you have 3 bits and one of the bits gets 1 every 2 cycles ? To be a 3 bit ring counter, each flop should get 1 every 3 cycles.
The correct answer is it's a simple sequential counter that is counting down. This is a typical logic that people use when they implement a clock divided by 2, 4, 8 , etc and it must be a sequential counter.
As for which one fails first when clock speed increased, it's not possible to find the answer without delay information.
Suppose clock is running at 10ns, and the loop of the 1st flop has 4ns delay, and the loop of the 2nd flop has 11ns delay, both passes the timing, but when you increase the clock speed to 5ns, the 2nd flop fails while the 1st flop doesn't.