Unknown MacBook Air error

OSX Mavericks, MacAir11

My built-in keyboard suddenly does not work anymore. Even when I did not turn on caps lock it stills capitalize all letters for me. I relogged but does not work. After testing I found out that the Right Shift is glitched. This makes me unable to enter the password of my Mac correctly and leads to the second problem. I don't know if it's because the keys are malfunctioning or I get infected by a virus.

As I cannot log in into my Mac, I have to log in using the Guest User account. But this happens:

And it made an infinite loop.

Error message (god, it took me a long time!)

panic(cpu 1 caller 0xffffff80007bfe45): "Process 1 exec of /sbin/launchd failed, errno 2"@/SourceCache/xnu/xnu-2782.1.97/bsd/kern/kern_exec.c:4068
Debugger called: <panic>
Backtrace (CPU 1), Frame : Return Address
0xffffff809930bdf0 : 0xffffff800033a811
0xffffff809930be70 : 0xffffff80007bfe45
0xffffff809930bf40 : 0xffffff8000799368
0xffffff809930bf10 : 0xffffff80007dc2b1
0xffffff809930bf50 : 0xffffff8000336e46
0xffffff809930bf80 : 0xffffff800041eeae
0xffffff809930bfa0 : 0xffffff800043a40f

BSD process name corresponding to current thread: init 
VM Swap Subsystem is ON
Boot args: -x

Mac OS version:
Not yet set

Kernel version
Darwin Kernel Version 14.0.0: Fri Sep 19 00:26:44 PDT 2014; root:xnu-2782.1.97-2/RELEASE_X86_64
Kernel UUID: 89E10306-BC78-3A38-955C-7C4922577E61
CoreStorageFsck: LVG on disk0s2 is damaged and mounted read-only
CoreStorage: fsck_cs has finished for group "43F1F1FD-3E8A-47D7-9253-288845A95E7C" with status 0x04
ARPT: 2.004733: srom rev:8
the 0xffffff800af214a8 LVG MLV is readonly because metadata is not writable 
ARPT: 2.100222: BTCOEXIST off
ARPT: 2.100652: BRCM tunables:
ARPT: 2.100659:   pullmode[1] txringsize[  256] txsendqsize[1024] reapmin[   32] reapcount[  128]
ARPT: 2.101263: wl0: Broadcom BCM4353, vendorID[0x14e4] BAR0[0xa0400004]
7.15.124.12 (r497602)
__HIB  text base: 0xffffff8000100000
System model name: MacBookAir5,1 (Mac-66F35F19FE2A0D05)
CoreStorageFamily::unlockVEKs(C98CABEB-A027-4381-94EA-4705C08B70E5) VEK[?]unwrap failed. this is normal, except for the root volume.

System uptime in nanoseconds: 2133007077

See the error in action here.

I did not make any modifications to the OS itself. Found out that the keyboard problem and the kernel problem is two different things.

Any suggestions why this is happening, and how can I fix this problem?