La granjera dice que el caballo parece muy serio, pero en realidad es el más cariñoso de todos.

Because granjera is a feminine noun meaning female farmer, and it has to match the woman being talked about.

• el granjero = the male farmer
• la granjera = the female farmer

In Spanish, many nouns for people change -o to -a depending on gender.

Dice que means says that.

• dice = he/she says
• que = that

So:

• La granjera dice que... = The farmer says that...

In Spanish, que is very commonly used to introduce what someone says, thinks, knows, believes, etc.

Dice is the third person singular form of the verb decir (to say / to tell).

Here are a few forms:

• yo digo = I say
• tú dices = you say
• él/ella dice = he/she says

Since la granjera is she, Spanish uses dice.

Caballo is a masculine noun, so it takes the masculine singular article el.

• el caballo = the horse
• la yegua = the mare

Even when English might sometimes leave out the, Spanish often keeps the article. Here it refers to the horse being discussed.

Parece means seems or looks in this sentence.

• el caballo parece muy serio = the horse seems very serious

It comes from the verb parecer (to seem / to appear).

This is different from es:

• parece serio = it seems serious
• es serio = it is serious

So the sentence suggests that the horse gives that impression, but that impression is not the full truth.

Because muy is the word used before adjectives and adverbs to mean very.

• muy serio = very serious
• muy cariñoso = very affectionate

Mucho usually means much / a lot / many, not very before an adjective.

Compare:

• muy serio = very serious
• mucho cariño = a lot of affection

Because both adjectives describe el caballo, which is masculine singular.

In Spanish, adjectives agree with the noun they describe:

• masculine singular: serio, cariñoso
• feminine singular: seria, cariñosa
• masculine plural: serios, cariñosos
• feminine plural: serias, cariñosas

So:

• el caballo parece muy serio
• es el más cariñoso de todos

Both adjectives match caballo.

En realidad means in reality, actually, or really.

Here it introduces a contrast:

• pero en realidad... = but actually...

It shows that the first impression is misleading:

• He seems serious,
• but actually he is very affectionate.

This is the Spanish superlative structure: the most + adjective.

The pattern is:

• el/la/los/las + más + adjective + de...

So:

• el más cariñoso = the most affectionate
• de todos = of all of them

Together:

• es el más cariñoso de todos = he is the most affectionate of them all

Because caballo is masculine singular, it uses el más cariñoso.

De todos means of all (of them).

It refers to the whole group being compared. Even though English might say of them all, Spanish commonly uses de todos.

Examples:

• la más alta de todas = the tallest of all
• el más rápido de todos = the fastest of all

Here, the horse is being compared with the others, and he turns out to be the most affectionate one.

Because cariñoso here describes a general characteristic, so Spanish uses ser.

• ser = to be, for identity or more permanent traits
• estar = to be, for states, conditions, locations

So:

• es cariñoso = he is affectionate
• está cariñoso = he is being affectionate / he is in an affectionate mood

In this sentence, the idea is that this is the horse’s nature, not just a temporary mood.

Spanish often leaves out subject pronouns because the verb ending already shows who the subject is.

Here:

• el caballo parece...
• es el más cariñoso...

After el caballo has already been mentioned, Spanish does not need to repeat él.

English usually needs the pronoun:

• The horse seems very serious, but in reality he is...

Spanish can simply continue with es.

The word order is very normal and natural.

Breakdown:

• La granjera dice que... = The farmer says that...
• el caballo parece muy serio = the horse seems very serious
• pero en realidad... = but actually...
• es el más cariñoso de todos = he is the most affectionate of all

Spanish word order is often similar to English here. You could move en realidad for emphasis, but the given version is very standard.

In standard Spain Spanish, the c before e or i is pronounced like the th in think.

So:

• dice sounds roughly like dee-theh
• parece sounds roughly like pah-reh-theh
• cariñoso begins with that same th sound in ca-ri-ño-so only if the c is before e or i; here it is before a, so it sounds like a normal k: ka-ri-ño-so

Important rule for Spain Spanish:

• ce, ci = th sound
• ca, co, cu = k sound

Cariñoso means affectionate, loving, or fond.

For a horse, it suggests that the horse is warm, gentle, and likes closeness or attention.

So the contrast in the sentence is:

• he seems serious
• but he is actually very affectionate

That makes cariñoso a stronger and more specific idea than just nice.