Arsenal are close to signing Victor Gyokeres from Sporting, the Swedish international is their main target, so i don't believe any rumors linking Watkins to Arsenal, they might only be interested if the move for Gyokeres falls through, and it likely could, because the president of Sporting is a stumbling block to the deal.
Yes, you are right, so far, the most closed rumor to sign for Arsenal is Gyokeres after their successful signing of Zubimendi earlier. The agreement clause is around €65 million ($76.6m) based on the article that I read and this is so closed for done deal. Additionally, besides Gyokeres, Arsenal is also still working on negotiations with Real Madrid to sign Rodrygo closely, they also want to get that right winger to be on thier player lineup. Moreover, Real Madrid and Xabi have given the green light for Rodrygo to leave, as long as the fee is in line with their expectations. However, they are also facing challenges because on the other hand, rumors also say that PSG also wants him.
Reference: https://www.football365.com/news/arsenal-dream-target-rodrygo-man-city-liverpool-gyokeres-checks-in-bags
If Arsenal sign Rodrygo and Gyokeres Arsenal is going to be a tough opponent to play against, Arsenal are currently working on Gyokeres deal before signing Rodrygo as Real Madrid is still in the Club World Cup, according to the news Xabi Alonso and Real Madrid have given green light of letting Rodrygo leave but Xabi Alonso always said Rodrygo is very important in his squad and he is doing everything to make the player have a good season but due to lack of minutes Rodrygo need to leave Real Madrid because he is a star player and as a Real Madrid fan I prefer Rodrygo over Vinicius because since the Balloon Dior issue Vinicius has not been good enough to help the team.
Having Rodrygo, Gyokeres and Saka as attackers is going to be a huge improvement for Arsenal because Trossard and Martinelli are not good enough to help Arsenal on the left wing, and Arsenal are giving Rodrygo full assurance that he will be in the first eleven, which is what Rodrygo wants. From my observation, I think Rodrygo and Gyokeres to Arsenal is just a matter of time because everything is going well.