I'll settle for white and fits me.

[sitifan]

Well I thought I had months to look for one but with such short notice I'll settle for white and fits me. (My bold.)
Source:

Is the clause in bold grammatically correct?

 

[5jj]

It works in conversational English.

 

[Skrej]

I find it hard to follow. Maybe I needed to watch a few seconds more context, but I gather she's saying "and it fits me".

I honestly had to think about it for a little bit though to work it out. My first instinct was that it was some glaring grammatical error. After a second listen, I was able to piece it together, but if your listener is having to do that kind of mental detective work, I question whether it really works, even in casual conversation.

 

[emsr2d2]

She doesn't say "it" and she doesn't need to. She's laying out the only two criteria the dress (I assume) will have to fulfil:
1. [The dress is] white.
2. [The dress] fits me.

She's expressing them as a list, following the pause after "I'll settle for".