Granny is sick, and her body is dying. Has Granny come to terms with her fate and accepted death, or is she in denial and trying to fight reality?

I don't think we can say that Granny finds any sense of peace. Granny is largely disoriented with thoughts that focus on present perceptions one moment and on old memories the next. This juxtaposition of emotions between past and present leave the reader curious about her emotional and mental status.