The term 'Sheep with Fine Wool' can be summarized by two crossword solutions: MERINO (6 letters) and Merinos (7 letters). MERINO is a breed of sheep that is widely regarded as having some of the finest and softest wool of any sheep. Merinos are the plural form of MERINO, referring to multiple MERINO sheep. MERINO wool is highly sought after for its softness and warmth, making it a popular choice for clothing and other textile products.