Safvet
Yes. Safvet is historically attested in Bosnia; Safvet-beg Bašagić (1870–1934) is a documented historical bearer.
It comes from the Arabic noun safwa (صفوة), meaning 'purity' or 'the chosen/elite'.
Safvet is very rare outside Bosnia; it appears primarily in Bosnian Muslim onomastics derived from Ottoman-era usage.
Yes. The name has an Arabic Islamic semantic field (purity, chosen) and no prohibited connotations; it is appropriate as a Muslim given name.
Pronounced SAF-vet in Bosnian pronunciation; the stress typically falls on the first syllable.