 Solution

The interface is material. Applying the kinematic boundary condition to $y-\eta (x,t)=0$ gives, exactly,The disturbance velocities and $\eta$ are small. Products of two disturbance quantities are second order, and a Taylor expansion moves their evaluation to $y=0$ at linear order. HenceThe extra upper-fluid term is advection of the displaced interface by the base uniform flow.

Use the Unsteady Bernoulli equation separately on each side, with constant mass density $\rho$. There are no restoring terms specified at this internal interface, and its pressure is continuous. Choose the time-dependent potential gauges so that the undisturbed pressure is $p_0$ on both sides. Subtracting the base values from Bernoulli's principle gives, at linear order,The quadratic disturbance-velocity terms have been discarded, while the cross term with the base velocity is first order and must remain. Equating the perturbation pressures yields the third condition: