So either Green or Blue in the above example.A skin base is chosen from one of the parents.So if you have a Dark Green mother and a Light Blue father, your children will always be either Dark Green or Light Blue.Under EA Standard, skin tone is inherited from one parent or the other, it is never a combination of the two.The main option is 'Pregnancy \ Genetic Skin Blending' which alters how the skin tones are inherited.
Extra StoryProgression contains coding to adjust the genetics inheritance performed when a new sim is born in-game.