“Are there many gods? Are gods more holier than each other?”
This question requires some explanation beyond a simple “yes” or “no” answer, because both answers are correct and incorrect at the same time.
Mormons believe that every human being is a God in “embryo” form, or childlike form. Just as a boy becomes a man or a girl becomes a woman, we believe men and women become Gods and Goddesses. We believe the purpose of this life is to move us along that path, and that this life is one of multiple steps in that direction. Of course if this is what we believe, then yes, we believe there are multiple Gods. In fact, there must be billions, trillions, or even more Gods.
However, when we speak of worshiping God, we only speak of one God. Mormons believe in the commandment “You shall have no other gods before me”, but whereas those of other faiths think of “other gods” as being Baal or other gods that don’t really exist, or perhaps other “gods” in the sense that one can “worship” his career, fame, money, Blu-Ray, etc., Mormons believe all that plus the idea that there are in fact other gods, but only one God that we need to worry about. Or in other words, we only have one boss, one chief, one being that we worship and obey, and he is a specific person, separate from other gods. The other gods have no power over us, and we owe them no obeisance, no loyalty, etc. They are not in charge of us, responsible for us, nor do they appear to have any interaction with us, just as our God, theoretically, has no involvement with the children of those other Gods. In a sense, you might as well say there are no other Gods, because for all intents and purposes there aren’t. The only reason it’s even important for us to know that there are is because it tells us something about our own divine purpose.
Now, for the second question regarding whether one God can be “holier” than another God, the answer is more straightforward–no. Mormons believe that God is 100% perfect, omniscient, omnipotent, etc. There is no being more righteous, more knowledgeable, more powerful, etc. If there were, then it wouldn’t make much sense to do the bidding of the less powerful God, because the more powerful God could come along and turn all the first God’s plans upside down.
But this is kind of a weird part of the discussion, because there is and cannot be any such thing as a “less powerful” God, because by definition that person would not then be God. All Gods must, theoretically, be exactly equal in power if they all have 100% of whatever power can be attained.
To sum up, Mormons believe there are many Gods, but only believe in one God. Or to put it another way, Mormons know there are many Gods, but only know one God.