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Apart from SharePoint versioning, how can we keep track of the content edited by the team members? Will the editors name available in the review (audit) section as a comment? Or how can we display who edited which part in the word file?

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In Word, on the review tab, click Compare. You can compare to the previous version or choose the documents that you wish to compare. Author's initials are displayed in the review pane. If you compare to the last version, you know that all changes were made by the Modified By person for that item in the sharepoint document library.

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As per my knowledge you can be able to track content edited by the member using version history. For what content is edited either You can use version history or you can use the MS Office auditing functionality on the documents.Again this needs to be done from user side so it is end users responsibility to enable that. other than that i am not aware if we can find what is edited.

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