While instantiating InMemorySigner, we should provide the "Encoded private key". Is there a way of generating this Encoded private key from the .json file I get from the faucet?

  signer: new InMemorySigner('YOUR_PRIVATE_KEY'),

Yes, you can use signer = InMemorySigner.fromFundraiser(email, password, mnemonic); or importKey(Tezos, email, password, mnemonic.join(' '), secret); from @taquito/taquito-signer

An example

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