Q1. Does Apple Have One?
Not a dedicated authoring app but they do provide the ability to author DVD's in the Final Cut Pro Application.
You can get a free 90 day trial here...
Final Cut Pro for Mac - Free Trial - Apple
Q2 Are there instructions on the Web?
Yes ,here, best to create disc image before burning to DVD.
Create optical discs and disk images in Final Cut Pro for Mac - Apple Support (AM)
Q3 Will a 2 1/2 hour iMovie fit on one DVD?
According to "Create optical...." link above , creating a disk image defaults to Single Layer media by reducing the bit rate, so the extended time would result in reduced quality. In other words it does what it can to ensure that it does not exceed the capacity of a single layer disc, but reducing quality as it does so.
As mentioned above, best to split movie into two parts at a convenient point, by doing the following.
Import your iMovie project into FCP by "Sending projects to FCP"
Send projects to Final Cut Pro from iMovie on Mac – Apple Support (UK)
In FCP when you create the DVD disc image(s) you can select the range in the time line.
You will do this twice, first range will be the start to a convenient point about mid way and the second range will be this same mid way point to the end.In other words two disc images, first half and second half. Disc image 1 and disc image 2. Two separate single layer DVD's required for complete movie.
You might want to consider adding chapter markers which can be performed in FCP before you create the disc images. Use the "search this guide" function ( ....chapter markers ) in the following link , FCP user guide.
Final Cut Pro User Guide for Mac - Apple Support
Not as complicated as it might first sound .Have fun.