Faith or Nerissa ?
I know I am late to jump in this discussion but I think that at the end of the game the girl we encounter is Nerissa and is also the girl we encounter in the beginning.
You see in ‘Donkeyskin’ fable, faith lives in woods for a long time and may have met the Woodsman at some point of time, which is why he was furious that faith was not able to recognise him because she wasn’t faith but NERISSA. The question actually is, how did she get that glamour ? The answer possibly is indicated when she tells there is an amount she required which she had to pay to someone, who was actually the Witch who glamoured her.
Also in lil mermaid fable, Nerissa did not kill the prince, goes back but instead of becoming air, may have been restored as human and then meet prince who abused her and she had to then leave him and that’s when that shit Georgie must have found him for ‘Working’ purposes.
The ending options hence basically drives to same road, wether you catch her or not, you have no proof of that. And in this theory lies only one question, why was faith unavailable exactly ?
(She being dead is the wrong answer, rest the story may have progressed very very differently.)