Part I: $CN^{1/3}$ is enough.
Start with $P(x)=\prod_{k\le N^{1/3}}(1-k^2x^2)$. Notice that it vanishes at $1/k$ with $k\le N^{1/3}$, is bounded by $1$ on $[0,N^{-1/3}]$, the degree of $P$ is $2N^{1/3}$ and on the interval $[0,2N^{-1}]$ we have $\log P\ge -2\sum_{k\le N^{1/3}}\frac{4k^2}{N^2}=o(1)$. Now just take the Chebyshev polynomial $Q$ of degree $N^{1/3}$ adjusted to the interval $[0,N^{-1/3}]$. It will jump as you requested between $N^{-1}$ and $2N^{-1}$ and stay below $1$ on $[0,N^{-1/3}]$. The product $P(x)Q(x)$ will then satisfy all your conditions.
To be continued...