This is not a spoiler. Just a theory. Here’s the spoiler:
She was a mermaid who met Cesar when they were kids and became human for him. However they both lost their memories of that. For them to be together in the end, his parents will arrange for them to pretend that she’s actually a princess from some foreign land that they took under their wing, which is why she was pretending to be Cesar’s sister

I still have the feeling she's the lost princess from the nearby kingdom because the crown prince has the same green tinted hair