For overclocks over 4ghz it's recommened to have Level 6. Just to give you an idea my 2600K is 4.4ghz on 1.33v, with LLC Level 6, which stops the voltage from dropping when the CPU is on max load.
Strange, most Z68 boards have 10 levels. Just set it to the highest then and try 1.32v again, and run OCCT/Prime for a few hours. If not then just add more voltages. Just make sure it doesn't go over 1.38v.
I assume 5 is high. Depending on how ASRock has implemented it, 5 should slighty increase the voltages on max load while 1 whill drop the voltages a bit instead. You might need to experiement with this to find out.
Awesome, just make sure you run Prime for 8 hours minimum to ensure everything is stable. So far it sounds like you have a pretty good chip.