Ailin flew all the way to the Imperial City, and was even questioned twice by Guardian Dragon Knights, but the wrist band from the Dragon Knight Academy and her likely Fairy Dragon identity earned her the elegantly treatment from the Guardian Dragon Knights.
Returning to the General's Mansion, when Ailin nervously arrived at her grandfather Kai Long's study and told him about it, General Kai Long was slightly surprised, but then told Ailin that it wasn't a big deal. The change in appearance was a trivial matter. Even if Ailin had really become a Fairy Dragon, she would still be his granddaughter.
Kai Long planned to find ways to let the outside world know that Ailin had the blood of a Fairy Dragon, thus giving Ailin a legitimate name. As for Ailin's father who had already died in battle, and her mother who died of grief on the spot, nobody knew whether he actually had a Fairy Dragon companion.
So, it ended up being handled simply like that.