A great approach! It is so much better to hear a sincere adult answer. She'll know that you're the honest one, the one who respects her, and that she can talk frankly about these kinds of things with you. And she won't get some weird nonsense in her head from getting the story from other kids.
And when she grows up she won't think of sex as something half-mystery, half-evil, so she'll be more realistic about it and she'll have the right tools to make good decisions.
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