animal exhibits alternation of generation

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Yes, alteration of generation is found in some individuals of animals of phylum Cnidaria.
Alternation of generation means that two types of organisms, a sexually reproducing form and asexually reproducing form alternate in the life cycle of animals. 
Cnidarians exist in two basic body forms called polyp and medusa. Alteration of generation is exhibited by those Cnidarians that occur in both forms like Obelia. In this: polyp reproduces asexually to produce medusa and medusa reproduces sexually to form polyp).  Thus, there is alteration of generation also found in some  animals.

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No they don't since they don't have a diplohaplontic lifestyle.
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