1:
Our mishnah is concerned with the status of various foods if they become mixed with yeyn nesekh.
2:
The first clause of our mishnah is simple. If yeyn nesekh falls on grapes they may be rinsed in cold water and then they may be eaten because the water removes from the grapes all the wine. However, if the grapes were split open rinsing them with water will not avail because the wine will seep into the fruit.
3:
The next clause is concerned with an actual case. A merchant, one Beothos ben-Zonin, was importing dried figs by ship. During the passage a cask of wine, which was yeyn nesekh from the Jewish point of view, broke open and the wine spilled upon the figs. When asked whether Jews could buy those figs the sages responded that it was permissible. Their reasoning is explained in the next clause.
4:
Our mishnah now brings a general rule. If any foodstuff or liquid that is prohibited mixes with some other foodstuff or liquid that is in itself permitted the resultant mixture is permitted or prohibited according to this general rule: if the prohibited foodstuff or liquid improves the taste or flavour of the foodstuff or liquid with which it has become mixed the whole mixture is prohibited; however, if the mixture spoils the flavour then it is permitted - because no benefit is being derived.
5:
The above rule is true, of course, only when the prohibited foodstuffs or liquids are permitted in themselves, but for some 'technical' reason have become prohibited; if they are intrinsically prohibited the rule does not apply. In our case, wine is a permitted beverage; it is only prohibited if it belongs to a non-Jew or had been handled by a non-Jew. Apparently, wine spoils the flavour of dried figs so the figs are permitted.
6:
The last clause of our mishnah is, in fact, just an illustration of what we have just explained. If vinegar derived from yeyn nesekh becomes mixed with groats or grits - crushed grains - they are permitted because the vinegar spoils the taste of the groats.

