You need to know the Legend of Azoria to answer her questions correctly. If you wish of course :)
You can get some info here: https://steamcommunity.com/app/640850/discussions/8/1698293255136366129/
But the most important thing about this character is that she makes hints about how the story goes in the future. You will see her several times, not only in Ellond. Even if you were wrong with an answer and defeat her in battle. She is an immortal and one of the lesser Gods of Azoria similar to Damballa, Swamp Mother, and the others.