Yes, you can. I am using it on my iPad Pro 10.5”. However since you happened to ask this on the very day of the iOS 11 upgrade, you should be aware there’s an issue Apple and Microsoft are working through. (Link below.) I think it only impacts email. I did the iOS 11 upgrade this afternoon, and I just tested Excel and it works for me.
Just letting you know in case you run into any troubles. You could just stay on iOS 10 for a couple of days if it’s critical you have no issues.
As far as compatibility, they are compatible. You can work on the same file and keep it on OneDrive (which is Microsoft’s version of iCloud). And then you can pick up wherever you left off on all your devices, including a Windows desktop.
You need to buy a subscription, which you can get on the App Store.