FRANCIE: Well, no one has proof [the Puffs exist]. It’s just folklore.
IVY: Like Snow-White and Rose-Red.
Snow-White and Rose-Red is a German fairy tale, best known from the version in the collection of the Brothers Grimm. In the story, Snow-White and Rose-Red are two sisters, one blonde and quiet, and the other dark-haired and lively, who live with their widowed mother in a cottage in the woods. The girls love each other and share everything equally.
They make friends with an unusually polite bear, giving him a warm place to spend the winter, and playfully rolling around with him before the fire. Later on, their bear friend saves them from a wicked dwarf, and is revealed to be a prince, put under a curse by the dwarf. It turns out they were rolling around and cuddling a prince in a fur suit the whole time! He marries Snow-White, and just as it looks like the girls really are going to share everything, the prince turns out to have a convenient brother for Rose-Red, and they all live happily ever after (their mother fades out of the story).
It’s one of the more frankly erotic fairy tales, a story of innocence reaching sexual maturity. It’s somehow fitting that a Chilton girl knows of this lesser-known fairy tale, and the name might remind us of Francie’s red hair! (Modern versions of the story often give Rose-Red literal red hair to match Snow-White’s literal fair hair).