It's amazing how they interpret things like that. Get the important bits and cut out all the other fluffy nonsense.
Weirdly enough, at lunchtime my DS1 (3.3yrs) seemed to have that story on his mind as well. He put an ENORMOUS piece of pizza in his mouth, then through tomato stained teeth said- I have a tummy ache. "Huh?" I ask, "tummyache?", I start showing concern. To which he replied "yes, eating lots, like a caterpillar I am"..... (he talks a bit like Yoda from Star Wars most of the time!!)
Your DD sounds a lot bit more cleverer with her analysis(!)