The genotype refers to the alleles of the individual and the phenotype to the observable characteristics derived from the genotype and determined by the dominance of the alleles.
This means that the genotype of the mom would be PpRr, being heterozygote for both genes.
The father's genotype is PPRr, homozygote for the size of the shape of the lips, and heterozygote for the color. His phenotype would be puffy red lips because he only has the alleles for puffy lips and red is the dominant allele for the color.
If we look at the Punnett's square, we see that we have a missing genotype for the row PR and the column pR. We can complete it in the following way:
This genotype would mean a child with puffy red lips because puffy is the dominant allele and they would only have alleles for the color red.
In the Punnett's square, we can see that 2 of the 16 squares have the genotype PPRR, which means 1/8 of the offspring would have this genotype.