God in heaven vs God in temple?

I was casually chatting with a little girl whom I shall not name. Let's just call her Alice.

Alice " I have a grandmother. She is my father's mother"
Me "oh, so where is your grandmother? do you live with her?"
Alice " No, because we pray to a different god"
Me" huh? so which god do you pray to? "
Alice " The one in heaven"
Me " Oic, what about your grandma?"
Alice "The one in the temple"

It just got me thinking on how observant and perceptive our little ones can be on such minute and subtle difference.