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These options are greyed out if you've unchecked the box 'Allow SourceTree to modify your global Mercurial and Git configuration files' at the top of the 'General' tab. SourceTree can't set up the external diff for you if it's not allowed to update the config files.
You can use an alternative diff (probably merge too?) tool in mercurial *without* needing to 'Allow SourceTree to modify your global Mercurial and Git configuration files'.
In your ~/.hgrc you can have:
[extensions] hgext.extdiff = [extdiff] cmd.sourcetreediff=/usr/local/bin/twdiff opts.sourcetreediff=--resume --reverse --wait