Snow White's Discovery About Daniel's Fate

SNOW WHITE DISCOVERY ABOUT DANIEL'S FATE

Recently, I watched Season One episode of ABC-TV's "ONCE UPON A TIME" called (1.07) "The Heart Is a Lonely Hunter"and found myself confused over a matter regarding Snow White and her knowledge of Daniel's fate. 

In one of the flashbacks for "The Heart Is a Lonely Hunter", the Huntsman was commissioned by Regina aka the Evil Queen to take the recently orphaned Snow White into the woods, kill her and cut out her heart. Sensing the Huntsman's odd behavior, Snow tried to make a run for it. She realized that that she would not get very far, Snow stopped running and sat down to write a letter to her stepmother. The Huntsman failed to kill Snow White and later, presented a stag's heart to Regina, claiming that it came from Snow. He also presented Snow's letter to Regina. 

The letter expressed Snow White's knowledge of Regina's desire for revenge and that her unintentional act of indiscretion led to the death of Regina's love, namely her family’s stable boy, whose name was Daniel:

Dearest Stepmother,

By the time you read this, I will be dead. I understand that you will never have love in your life because of me, so it's only fitting that I'll be denied that same joy as well. For the sake of the kingdom, I hope my death satisfies your need for revenge allowing you to rule my father's subjects as they deserve with compassion and a gentle hand. I know what you think you're doing is vengeance, I prefer to think of it as sacrifice for the good of all with that in mind I welcome the end. I want you to take my last message to heart. I'm sorry and I forgive you.

I never paid attention to or even remembered this letter when I first saw "The Heart Is a Lonely Hunter". However, one of the flashbacks for (2.02) "We Are Both" featured a scene in which a young Regina and an even younger Snow White are discussing the former's upcoming marriage to the latter's father, King Leopold. Snow White still seemed oblivious to the circumstances behind Daniel's death.

In the years between Regina's marriage to King Leopold and the latter's death, Snow White learned the truth behind Daniel's death and Regina's desire for revenge. My question is . . . how? How and when did Snow White learn the truth behind Daniel's death? And if she knew the truth by the time the Huntsman had been recruited to kill her, why did she seemed so open to Regina's fake grief and words of condolences at the funeral, following Leopold's death? Was Snow White faking it, as well? Or had the writers simply created another plot hole?