You've only just completed first year, and 4th year is a long way ahead. A lot can happen in those few years so that may not be the case when you're in 4th year! Also, I'm not sure about Eng courses specifically, but a lot of courses are offered every other year, so they may only be offered in alternating academic years. Regarding the professor and reference, you won't know until you ask directly! Maybe the prof saw in you some quality that they think would be beneficial for a job e.g. independent, team work skills, communication, etc. which your grades wouldn't be exactly representative of. So definitely ask. What's the worst that can happen? A no? Then you can just another professor!
Last I heard of the lipdiub was that they were having a few issues with approval/organization and funding. Not sure where it stands today.