[X] None of it is true! The blood of the dragons runs through your veins! Sure, it may runner thinner than some, but you are hardly a peasant's child! You are grateful to Beautiful Dawn and Steadfast Grain, who took you into their home, but they aren't your parents. You haven't seen your parents…for a long time. A friend dared you to come with her when she snuck out during Calibration…and you didn't return to school the next morning.
[X] It's entirely unrelated to the truth. The only thing that rings true is the bit about your parents. If you couldn't shapeshift, this "imperial tester" might have gotten a bit suspicious. When you got caught up in this "imperial test", you thought that you could hide your power from this artifact they used, and decide what to do next on your own terms after getting a read on the situation. Instead, you had to pretend to be one of the divine scions they're drafting, or make a scene. And this village may be welcoming, but it doesn't have any leads about getting you home. You'll need to find some other way to slip back into the Ways of unreality.