1.In MAX7219 datasheet i noticed there is a resistor is placed in Iset to control a matrix. I am going to control a 3232 matrix with a 16 MAX7219 and 1 MAX7219 is going to control 88 matrix in that 3232. So In that 88 sometimes all the LEDs in a column and row should be on in any 8*8 matrix. If that is a case 20mA (5mm LED's average current rating)*8=160mA output should be needed in a segment. For that how much valued resistor should i connect in Iset?
10k should be about right.
Yes, you will need a 3 Amp power supply.
2.In some led matrix projects they used 10.1mF ceramic and 110mF electrolytic capacitor. But in datasheet they used only 1*0.1mF capacitor only. Is it necessary to use 2 capacitors??
Read page 10 of the datasheet - "Supply Bypassing and Wiring".
Most of the compact modules - the ones you want to use - omit the 10 µF. A good recommendation would be to attach a 47 or 100 µF capacitor each 4 modules along the chain.
The more basic modules do have the 10 µF capacitor.
3.How many of MAX7219 can be daisy chained without any problem (for building bigger matrix)?
Data wise, 16 is probably do-able if they are all in one unit. If they get "glitchy", you may have to slow down the data transfer by using serialising code rather than using the hardware shiftOut. Power-wise you should parallel each row, preferably at both ends.