This book doesn't know if Orcs can breed. Yes, they can! You get to see a half-orc in Oblivion. He looks like a normal Orc except for white skin like a human. But it turns out his dad was a Vampire, so I do not know if the pale skin is a vampiric or human trait.
The book still gives the general idea how interbreeding in TES works. The first paragraph is quite a good summary of what we know at this point (except the part about Argonians' classification). The rest is assumptions and theories, so obviously I wouldn't consider it decisive evidence one way or the other.
I know about the Gray Prince. I always thought it was natural that orcs were fertile with other races - they're still mer, after all - but it was nice to find out that vampires can breed too.
As for werewolves, my guess is that they could reproduce with other wolves while in their wolf form, similar to how they're fertile with humans in their human form. I wouldn't count on a human-wolf pairing, it's probably like with a regular wolf, meaning it won't work. But I know next to nothing about werewolves, so don't take my word for that.
I actually like the idea that they only do Hircine's bidding when in the wolf form. If so, then infecting others with lycanthropy would be their way of procreation, right?