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2.) Extract the file to Steam/Steamapps/common/VictoriaII/mod
3.) Make sure the folder and '.mod' file is directly under /mod/. If its not, then those two are probably inside the newly extracted folder. Move those out.
4.) Check the mod up in the launcher before starting the game
There is no Steam Workshop because the game was released before that was a thing, and the Developers simply didn't implemented it.
Extract it by rightclicking -> Extract to ...
I dont know what you mean by the '.mod' thing.
7Zip is the best option.
winRAR is the best, hands down.