The versions shown on my LG G Watch R AFTER the upgrade enabling Wifi as accessed on the smartwatch through Settings/About are:
- Android Wear: 126.96.36.1996028
- Google Play Services: 7.8.99
- Android OS: 5.1.1
Most functionality remains when your watch is away from your phone but connected over Wifi.
The Wifi range (how far I can be from the Wifi access point) seems to be about 80 - 90 % that of a laptop or smartphone.