Yeah, I'm guessing she was "a place far away", as in another world or time or whatever, but "very close" because she was hanging out with Renko/Reimu as Merry the whole time. Or something. I don't know what Koishi had to do with anything, or if she understood something important, and the last few pages seem a little bit incomprehensible, but I think that's what the general idea was supposed to be? I have a feeling it was a difficult translation.