based on a famous fairy tale, whose title i don't recall

Isn't this the one that goes "Did you drop a silver knife, or a gold knife?", the person answers neither, so the spirit gives him both?

Nimue?

Always thought it was based in the same legends as The Lady of the Lake.

In .hack, the creature from the pond askes exactly the same question.

Happens in several of the Harvest Moon games, too. Coincidence?

It's a fucking allusion, kids. Of course they're fucking related.

"Mercury and the Woodsman"

The funny thing about this is that in most cases, both choices will suck.

She will drop both on your head anyway...