1. American English word for British English 'Biscuit'
2. synonym for 'disintegrates,' 'falls apart'
3. The second and third word mean 'how'

1. That's the way it is.
2. 'Dems da berries'
3. That's life.

'That's the way the cookie crumbles' is a metaphorical way of saying 'That's life!' ('C'est la vie' or 'Eso si que es'). The saying perhaps comes from purchasing a package of cookies (BrE biscuits) and discovering that every last cookie in the package is broken. To paraphrase, 'You may be disappointed, but bad things happen to good people.'