This is going to get me slapped, but...
To some of us, Elves, Fey, Dragonkin, etc, are very real.
As real as Jewish carpenters who walk on water and heal with a touch, or as real as a burning bush in the desert.
So she may be Wiccan, or Pagan, or some other faith where in effect, you just handed her the equivelent of a picture of Jesus with an Uzi.