https://www.realmeye.com/wiki/petsMax all skills before fusing pets.
When you fuse pets, your new pet will have the same skills as the 1st pet in the fusion (see guide on fusing pets) and the level of the skills is equal to the average between the 2 pets.
It costs more gold/fame to feed higher rarity pets (hence why it's best to feed them to max before fusing).
1st pet ability is determined by the pet race, other 2 are random.