The bolded letters should be the following: Mi abuela Matilda
you can also replace this noun with the pronoun 'Ella'. The pronoun tu (or you) matches with the words eres calvo. The full sentence translates to the following:
<em>Mi grandmother Matilda has glasses. You are Francisco. ___ are bald.</em>
Opposite genders greet each other by shaking their hands. When it's female to female, they kiss each others cheek. When male to male, they shake hands.