Final answer:
When Sherman says 'I love you, Mr. Peabody,' Mr. Peabody would likely understand it as a expression of affection and gratitude.
Step-by-step explanation:
When Mr. Peabody was tucking Sherman in for bed and Sherman said, 'I love you, Mr. Peabody,' Mr. Peabody would likely understand the sentiment behind Sherman's words. 'I love you' is a common expression of affection towards someone. In this context, Mr. Peabody would likely interpret it as Sherman expressing his love and gratitude towards him.