Sentence:  'Is he handsome, Pa?' inquired the younger daughter. / 'Silly <WSD>Merry</WSD>!' said the eldest: <WSD>Merry</WSD> being fond for Mercy. 'What is the premium, Pa? tell us that.' 
Meaning of the word marked with <WSD> tags:  (from=English) from the adjective, also a diminutive of Mercy.