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Before the events of the game, Queen Horne was giving birth to Aire and died in the process. When the party is sent back in time, they go to Horne and arrive on the day Queen Horne was giving birth to Aire.
After defeating Satan and restoring King Horne to his original form, Queen Horne gave birth to Aire and did not die. She is seen at the end of the game with the rest of the royal family.