There is no way to middle click on a macbook via trackpad. As a result there is no way to paste via the trackpad. Suggest mapping a 3 fingered tap as middle click.
There is a utility called MiddleClick which enables this behavior, however it creates some oddities in other programs. It also adds a permanent icon to the menubar.
It would be nicer if this function could be built into iTerm directly. It might solve the many requests for right-click paste.