XSD is useful for validating the XML is in a proper format and may help with "1. The form is correct". For example, XSD could be used to validate someone hasn't entered an item SKU where a price was needed.
However, XSD not a good tool for validating business logic as in "2. The content is correct". For that, you will probably need to custom validate the logic using your programming language of choice, perhaps with the help of something like XPath to extract the elements.
-Larry