Which compiler version maven is using here?

I am using below maven compiler plugin to compile my java code

        <plugin>
            <groupId>org.apache.maven.plugins</groupId>
            <artifactId>maven-compiler-plugin</artifactId>
            <inherited>true</inherited>
            <version>2.5.1</version>
            <configuration>
                <source>1.6</source>
                <target>1.6</target>
            </configuration>
        </plugin>

My java_home points to java 7

My first question will my classes be compiled with java 6 or java 7? If with java 6 (because of <source>1.6</source> ), how maven will know the path java 1.6 as java home points to 1.7?

If i need to compile the source code with java 1.8, i believe i need to set source and target as 1.8? But maven again will know jdk 1.8 path ? Do i need to change java_home to pint to java 8 ?