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The Last Unicorn by Peter S. Beagle

She lived in a Lilac wood all alone and she was very old, she believes she is the last unicorn in the world and sets off to meet a magician (whose magic does not always work!). On her way she comes across a King Haggard who had banished Unicorns from the land. A lovely story of fantasy.. or is it ? Litrasaurus is not so sure!