Method #1 (Cheap)
Use the Magnetic Lasso or Magic Wand tool to select a dot:
Then, remove its saturation by pressing
Ctrl-Shift-U or going to Image » Adjustments » Desaturate.
Bring up the Curves (
Ctrl-M) and adjust them so that the dot blends into the surrounding area:
Repeat this for all dots. Then, erase excess with the Eraser tool. You might want to remove the saturation of the stripes altogether (they're a bit magenta-colored).
Re-paint that thing. It'll be easier. First, duplicate the original layer, then remove everything but the brown thing at the top.
Select the Polygonal Lasso tool, and make a selection above the original stripes. If you hold
Shift, you can add as many as you want.
After you've made the selection, create a new layer. With the new layer selected and the striped selection still active, fill it by going to Edit » Fill, thereby recreating the stripes with a color of your choice.
Paint the bottom manually as necessary.