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How many types of animation we can do using CSS3 and is the animations compatible with IE7 and IE8?
Nope, Brower Support: http://caniuse.com/#feat=css-animation
How to use: https://developer.mozilla.org/en-US/docs/Web/Guide/CSS/Using_CSS_animations
The answer is a great many CSS properties are animatable.
Most, however, are not compatible with IE7 & 8 (and IE9 sometimes).