Your task is to analyze this XML and to store these test questions into a simple relational database (one table for modules, another - for test questions/items, yet another - for answer variants). When processing snippets of XHTML, you will have to convert them into a wiki-like format called "Textile".
XSLT 1.0 transformations are normally used to transform XML into another XML format or HTML. It is quite possible to use XSLT to produce text documents, e.g. in Wiki format.