The cpu is 64bit OK , the only limiting part is the 2gb ram as 4gb is really needed as a minimum for a 64bt OS. It will run on 2gb but will be slow due to having to page memory to the system drive.
If you already have one, use it exactly as it is, and if you no longer like or can't use it, throw it as far as possible. The main thing is that no one will ever find it. There is nothing to update, upgrade or improve. If you were planning to buy it, forget it as soon as possible and forever.
I honestly love this laptop Just got a brand new 15'' Lenovo with a Ryzen 5500u but this laptop is far easier to carry and get it into class. I also have it while traveling so nothing to worry If it gets stolen. To make it more usable I use it with Windows 10 LTSB with latest updates intergraded and windows update disabled. I browse the net with edge as chrome and Firefox are so slow and used compact os mode to have as much storage as possible
Upgrade the RAM - look around for bargains. Upgrade the HDD to an SSD (a 2.5" SATA SSD will replace your HDD easily, and make the laptop much more responsive).
It's possible, but MS doesn't support it. If there is any sort of legacy CSM support, you should try to just install via non-UEFI mode. If it is allowed at all, it would save you a lot of headaches.
I tried searching the internet for a custom modified winload.efi 32-bit version that you could use but I couldn't find one. The only thing I can think of is to use a custom efi loader tool, which I'm sorry to say I have no experience of the scope or details. They could all be 64-bit. If you do find one that is 32-bit, it could potentially do the job for you and load your OS, but I'm not sure how any of it works as I don't even know how the default windows efi loader works.
Even if you do get 64bit to boot (it should be possible if you have a modded bios that allows you to enable CSM), you will have a really hard time to get all the drivers working. Those atoms Z3735f are really complex. There's no "generic driver" package for them. You need specific drivers or you will have missing functionality like cameras, audio, battery detection, etc. The end result will also be a slower system because you will run out of memory sooner. My suggestion: don't do it