Process XML data embedded in the SOAP Envelope in PI

HI,

     I have a requirement where PI will be consuming the webservice of client system and the below structure will come back as a response. Now while generating an XML file for the error payload below, the data is getting garbled as a result a proper XML is not getting generated.

I understand I would be requiring a Java code to handle this which is fine. But my queries are as below :-

1.) Since it is a synchronous scenario, will the SOAP receiver process the below data or it will fail in the adapter SOAP receiver adapter itself?

2.) Will the data come inside PI and hit the Mapping Step and before that I can put a java mapping to remove the envelopes etc and send it to ECC ?

3.) Also there are French umlauts which are present in the payload will that show up in the message monitor as it is send from the target system?

<soap:Envelope xmlns:soap="http://www.w3.org/2003/05/soap-envelope" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema">

<soap:Body>

<GenerateResponse xmlns="http://www.abc.fr/">

    <GenerateResult>

      <ErrorCode>0</ErrorCode>

      <Value>

          <ErrorLog>&lt;?xml version="1.0" ?-UTF-8&gt;

                                   &lt;File name="20150407_093849_158.XYZ" importDate="07/04/2015 09:38:49"&gt;

                                   &lt;Event Date="07/04/2015 09:38:49" Tag="IMPORT_EVENT_IMPORT_START"&gt;

                                   &lt;/Event&gt;

                                   &lt;Event Date="07/04/2015 09:38:49" Tag="SHIPMENT_CREATION_ERROR"&gt;

                                   &lt;Erreur&gt;Vos colis n'ont pas de numéro de pointage unique.&lt;/Erreur&gt;

                                   &lt;/Event&gt;

                                   &lt;/File&gt;

               </ErrorLog>

               <LabelList />

     </Value>

    </GenerateResult>

  </GenerateResponse>

</soap:Body>

</soap:Envelope>