What does ruth mean?

What is the meaning behind her words?

What does this mean about their lives/hailsham?

This was said by ruth when they go to visit the boat and they drift off into talking about hailsham and its closing:

“That's funny,” Ruth said, “because I was having this dream the other morning. I was dreaming I was up in Room 14. I knew the whole place had been shut down, but there I was, in Room 14, and I was looking out of the window and everything outside was flooded. Just like a giant lake. And I could see rubbish floating by under my window, empty drinks cartons, everything. But there wasn't any sense of panic or anything like that. It was nice and tranquil, just like it is here. I knew I wasn't in any danger, that it was only like that because it had closed down.”

What does it mean when she says it was peaceful? what does this mean at all??

Please help! thank you!