I think this one is probably stretching at the bounds of 100 words quite a bit, and therefore I'm not surprised it's confusing. Yes, that's Gimli, and he's brought some toys from Dale for the Steward's children. The sun-and-moon-twisting-thing is a puzzle because Léof hasn't been born yet, so Morwen doesn't understand why there are three toys. All becomes clear some months later. (It's a tiny orrery, btw.)