Google Blogger Adult Content Policy Announced Previously is not being Implemented
They received lots of feedback in making the policy change, impact from a longstanding blog and the negative impact it will give to an individual who post sexually explicit content by expressing their own identities.
As of today, Google change its mind on Bloggers Porn Policy. While changing its idea on that matter, Google still continue and gives a warning to all users that they must put a BLOG LABEL as "ADULT" by turning on the adult content setting, this will serve as a WARNING to all your followers/readers.
In case, your blog(with adult content) is brought into Google's attention and your content is not set to ADULT Warning, they will turn on the warning INTERSTITIAL by confirming user's age, and if this happens all the time, your BLOG may be removed.
You don't have to worry if your BLOG doesn't contain sexually explicit content, by following BLOGGERS CONTENT POLICY your blog is SAFE(no need to change settings).