To be honest I found this one too far-fetched. It doesn't quite work.What do you mean, far-fetched? The third panel is obviously from Faye's imagination.
Indeed. To me it reads like Faye is describing what she's (fictionally) seeing, and that's what Marigold's referring to in the last panel. Much like Jeph did in the strip with Dora, Faye, and Pintsize during the space arc (with Faye also painting a colorful picture for the story they'll tell Marten when he gets back).