Princess thoughts

Princess was with me in the nursery helping me sort through clothes. Apparently she was thinking deep thoughts and she looked at me suddenly with a bright smile on her face, "Mommy? Do you know what I think?"

"What do you think?" I answered. I love to hear about the things that go through her mind and how she thinks.

"Do you know how our baby died before? I don't think she died anymore. I think she came back to us and she is in your belly now. So now we can be happy because she didn't die."

I was near to tears. How do you explain these things?