Translation:You eat rice and you drink milk.
Yes, "ye" is the most common 'you plural' found in Hiberno-English, along with a few other variants. You can report it if you like, but I'm not sure if they'll start accepting it. I've already reported one instance of "sibh = ye", but they haven't gotten back to me about it yet (they've been exceptionally quick in general, however, I must say. Each morning I wake up to a dozen e-mails of new translations accepted that they've approved).
But anyway, I too would like if they accepted "ye". In French and Spanish it doesn't bother me as much, but because when I learnt Irish in School it was "ye", I find myself saying it and typing it without thinking. But we'll have to wait and see what they decide.
No. Irish and English both have separate forms for the simple present ("you eat"/itheann tú) and the continuous/progressive present ("you are eating"/tá tú ag ithe).
While some other European languages don't make this distinction, these tenses are not interchangeable in Irish or in English.
sibh means you (multiple persons). Itheann tú = you eat, itheann sé = he eats, itheann sí = she eats, itheann sibh = you eat (multiple), ithean siad = they eat. I don't mind giving you this answer, but an advice: if you have a question, have a look first at the other questions about this sentence. Your question has been asked before. Often you can already find the answer to your question in it. ;-)