TMP61: How to replace RTD in cold junction compensation

Part Number: TMP61

Tool/software:

I want to replace RTD with TMP61 as a CJC of TC in a PLC temperature input module. And I have some questions:

1. How TMP61 works to sense the temperature of TC's cold junction?

2. Where should I put TMP61 to make sure the sensed temperature is the cold junction's temperature not the environment temperature or the ADC temperature or the PCB temperature or other temperature.

3. RTD CJC solution needs 4 AIN pins, does TMP61 only need 2 AIN pins?

4. Will TMP61 reduce the system precision compared to RTD? How influential is it? 

Thanks a lot!