Little Rose Riding Hood

If these stories really are Time Lord fairy tales, it seems to me that this one raises some existential issues: how can there be a fairy tale on Gallifrey that clearly features Rose Tyler and the ninth Doctor? (plus a Zygon and, of course, Bad Wolf) If the Doctor had remembered this one during the tv programme (as he did some others during "Night Terrors"), I feel like some confusing things would have resulted. The po-faced TARDIS wiki, of course, just categorizes this story's Rose as "Rose (Little Rose Riding Hood)," with scarcely a mention of who the character actually is. Richards does do a good job capturing the voice of Christopher Eccleston.