The red highlighted </ p > tags and all the < br /> tags should not be there. That's not coming from Gravity Forms.
Themeforest themes typically include a [raw] shortcode and it interferes with the processing of all shortcodes. That messes up the output from the Gravity Forms shortcode. The quick and easy fix is usually to wrap the gravityform shortcode in the raw shortcode, like this:
[raw][gravityform id="4" name="Form Name" title="false" description="false"][/raw]
That will work around the problem usually. However, if you're not using the shortcode at all, it's best to remove it from the theme completely to prevent problems like this from occurring.
You can read about previous experiences with the [raw] shortcode here:
Let us know if that helps.
Posted 7 years ago on Wednesday August 22, 2012 | Permalink