。
Karen's hem is rolled up.
Literal
Karen [gen-の] hem [subj-が] rolled-up [progressive-ている].
裾 (すそ) 'hem / bottom edge of clothing' and 捲れる (めくれる) 'to roll up / flip up' (intransitive). ~ている marks the resulting state — 'is (currently) rolled up.' A simple observational sentence, useful for clothing vocabulary and the intransitive-stative ~ている pattern.