Cute ferret, Twiggy runs somewhere and eats something in her sleep

Twiggy was sleeping on me and started walking in the dream world. She starts eating something (probably raw soup) around 1:45. she wakes up a little when she realizes that she is licking my jacket but I love how she still licks her chomps as if she really just ate something. This makes me wonder though, how well do animals realize that dreams are not reality and never happened? Or do they think that everything in their dream was real even if they don't understand how they suddenly are somewhere else when they wake? Any ideas?

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