I totally get this, Prague can be tricky with reduced mobility because of the hills. Definitely use the number 22 tram, it’s a scenic route that saves a lot of legwork!
Since you need something that entertains the kids but rests the grandparents' legs, a boat tour is your best friend. It’s the one activity where everyone in our family was happy. The grandparents could sit and enjoy coffee with a view, and the kids loved being on the water. There are various options, some even offer lunch so you kill two birds with one stone. You can find family-friendly schedules
on the website and see what fits your plan.
Apart from that, check out the Mirror Maze on Petrin Hill (take the funicular up!) and maybe the LEGO Museum. It helps to break up the history with some fun stuff!
Good luck with the planning!