Creating an illustrated version of a book

Hi All, I am a fashion/art lecturer at a college, and I would like to set my students a task of creating a series of illustrations for each chapter of 'The Mabinogion'. I would then like to publish this book and sell via Amazon kdp. My question is, can I include the text/chapters from 'The Mabinogion' alongside the illustrations or would this be classed as a copyright infringement?

Also, am I able to rewrite the chapters in a child friendly format or would this also be considered copyright infringement? 

Thanks in advance for any guidance you can provide.