The building represents Malcolm Canmore’s tower (a local historical site) the curvy line represents a small river or burn running through the town, and the green area at the bottom represents Pittencrief Park, a large public park gifted to the town by Andrew Carnegie (who was born in Dunfermline).
It can also be interpreted as a visual representation of the meaning of the town’s name itself - from Wikipedia:
There have been various interpretations of the name, “Dunfermline”. The first element, “dun” translated from Gaelic, has been accepted as a (fortified) hill, and is assumed to be referring to the rocky outcrop at the site of Malcolm Canmore’s Tower in Pittencrieff Glen (now Pittencrieff Park). The rest of the name is problematic. The second element, the “ferm” may have been an alternative name for the Tower Burn according to a medieval record published in 1455 which, together with the Lyne Burn to the south, suggests the site of a fortification between these two watercourses.
A lot of club badges will have similar historical references if that’s your thing :-)