[And that gives him pause. Truly, at least in the timeframe he was talking about, helping that Fire Nation had given the Painted Lady's true self some happiness. And during his time in Luceti... it wasn't hard to see her sufferings. He knew he threw the word around too loosely, which earned Masaomi's ire once when he tried mentioning only the positive aspects of taking care of Ikki. And Aang especially felt bad, because he knew, particularly from his own time at home, what it was like for Katara to truly be happy.

He's not exactly sure how to answer; especially given this is a little girl. So he tries some version of the truth.]

In a way it's both at the same time. Because... spirits are very magical! So... the Painted Lady's in different times and places right now. [Clearly because of spirit shenanigans rather than being trapped in Luceti.] In one... she isn't. Because she's stuck there's too many things she can't control, there's too many times whens he wants to help people but can't. But she still gets a little more every time she can succeed in helping someone. And in the other time and place? she is. She's got happiness from the people she helped.