What a good pooch. The dog could not smell the child yet he believed she needed protection.
I always wondered what dogs thought when they see tv. I assume they would see it as a series of disjointed moving images and random sound.
Yet this pooch realized the girl was in danger and needed aid. So its obvious dogs do not understand fantasy and do they instinctually know that ghosts exist.
Also how does the dog take into account the size of the child and lacking an odor. Dogs are big on identifying people and animals by smell. As well as seeing a bedroom that does not exist in its house.