Do two peer servers negotiate time ? or They share time ?.

I think configuring in my lan "ntp service" in two servers (Master1 ,
Master2) which are opened to public network.

Master1:

server ntp1.ien.it
server ntp2.ien.it
server ntp.iriti.cnr.it
server tempo.cstv.to.cnr.it
peer Master2

Master2:

server 2.pool.ntp.org
server ntp1.ien.it
server ntp2.ien.it
server ntp.iriti.cnr.it
peer Master1

A)
If both Master1 and Master2 retrieve time from respective internet
time server, is there also communication among Master1 and Master2 ?
M1 and M2 will take same time ?

B)
If yes, what information does they exchange ?
One of them synchronizing itself to other ?!

C)
If Master 2 lost Internet connection what happened ?