No, you must open Kontakt and load the library you are interested in inside Cubase, using it as an input device. The convolution reverb should be placed among the inserts on the same channel strip where you loaded the library, or alternatively, if you don't have other channel strips set up to play, it is the same thing to have it work as an insert on the output channel.
No, it is exactly as I wrote. Inside Cubase, you must load Kontakt within a channel strip as an input signal and use the convolution reverb in the same channel strip as an insert. If you don't know how to do this, you should get a book on Cubase and start studying it. On a forum, it is not possible to say everything. At least the basics must be known; otherwise, I am playing with swords and you are understanding with clubs.