Hi. The loco is 00 scale which hornby use but uses the same track gauge as HO so the Peco track set is compatible.
The price mentioned is a bit high as this set can be found for £70-£80 from many suppliers.
You do not mention where you are but any controller for DC systems with an output of 0-12v DC will do - Gaugemaster make some good controllers, Their "Combi" is a good choice at a reasonable price.
The loco as delivered is DC and not DCC so the controller mentioned is suitable.
Hope this helps . Colin.
Last edited by EMD_GP9; 11-19-2019 at 06:49 AM..