I'm of the minority that believes Kai would actually be upset that Gracie dies, because being a mom is like...everything to her. I mean, obviously not actually parenting, but the identity of being a mom is so strongly tied to her personality that she would be devastated to lose her single mom status. It's all she relies on for having any sort of identity because otherwise she is a live at home fat 30 year old who has no real life experience. At least she can use Gracie as a crutch as to why she doesn't work: she's just oh so busy parenting, of course! Though if Gracie did for some reason pass she would definitely try to marry Jeff and have another kid.