The mermaid gets her tits out, confirmed

Two paths is probably the new marriage candidates.

3 becomes 4, maybe something happens at the start of year 4 like at the start of year 3 with grandpa's statue?

Could mermaid fruit refer to pearls somehow?

IDK but is in the form of a haiku.

I think the mermaid one is pointing at the kids. The mermaid pendant is required for marriage so the fruit of that marriage is kids.

The general consensus on Reddit is

2 paths: either the new romanceable Sims, the Joja/community center or, our kids will be able to grow up

3 becomes 4: 3 current kids, 3 current main locations (valley, desert, island), 3 major galaxy weapons

Mermaids Fruit: Children will be able to leave the house, something with the Pearls, some kind of new fruit or fish