I Have A Ten Week Old Chinese Shar Pei That Wont Quit Nipping And Biting. What Can I Do To Stop This, She Also Has Watery Eyes?

Do not muzzle this dog.  This will not solve the problem and is not a humane way to treat a young dog.  At 10 weeks old this puppy is at the stage where it can be molded and trained.  You need to teach it how to act and what is appropriate behavior.  Telling the pup "No bites!" once then given it an appropriate toy and ignoring it is one way to stop nipping.  Do not repeat over and over "No bites!" or your pup will think this is a game, even though the attention is negative.
If your puppy is getting too excited and nipping in response place it in the crate with a calm or settle command then let it out once it has relaxed.
Teaching your puppy that putting human fingers or flesh in the mouth is not pleasant will also stop nipping.  When your pup nips you hold it's lower jaw-with your thumb under the tongue and forefinger under the jaw.  Hold this position for 3-10 seconds until your puppy whines or is uncomfortable.  Apply gentle pressure, you are not hurting the dog but you want it to annoy or make the dog uncomfortable.  This will associate discomfort with biting.
Have your veterinarian examine the puppy to see if the ocular discharge is related to conjunctivitis (not contagious to people or other dogs) or an anatomic problem.  Your veterinarian will also help you with behavioral training and can recommend local trainers. 
Until the puppy is well behaved limit or prohibit access to the grandchildren so they do not get hurt.

You can do one of two things, you can get a muzzle for when she is around the grandchildren, or you can get a trainer for the pup, and you need to be very aware of what the trainer is telling you, so that the pup doesn't  repeat these bad habits when the trainer has left after training. And then you will know what to do with the pup. Hope this helps, good luck to you.