My mistake-clarified by a new friend and descendant of the Sherman Peed Line, Arnom Harris. Sherman H Peed and Melinda Elizabeth Faulkner had two additional children, bringing the total so far to 5. The two I just learned of are: Susan Margaret Peed, born about 1848, and Ruth F. Peed, born about 1885 (LDS website). According to Arnom, Susam Margaret married Lindon P. Obriant, sone of John Obriant and Sarah P. on October 22, 1873. Susan is listed on the 1850 census as age 2, but not the 1860 census, leading us to suspect that she had died in infancy.
Regarding Ruth F., Arnom cites a Granville County NC Marriage certificate for one Flora R. Peed (as daughter of Sherman and Malinda Peed) to Dennis R. Lynch, son of Dennis and Phoebe Lynch, on December 16, 1884. I have never seen a Ruth or Flora in census records listing Sherman's household, so I think more research should be done to verify her relationship as a child of Melinda or Sherman's 2nd wife, Elizabeth Stem.