Centuries after the First and Second Great Magical Wars (in which magic users fought on opposite sides and millions were killed), the Empire has become the dominant power over the European continent.
The Empire initially adopted a firm anti-magical ideology. The Empire puts the remaining magic users into camps, treats them as second-class citizens, and attempts to indoctrinate them to be loyal to the Empire and to be shameful about their past historical crimes under the Witch Queen (even though some of them fought against the Witch Queen and the Witch Queen's own campaign was more morally complicated than portrayed in the Imperial narrative).
The Empire is powerful but it eventually seeks to weaponise a select number of magic users. As such, it begins to recruit magic users to fight in the Imperial military. Out of hundreds of applicants with magical blood, only twelve individuals are selected every year to become Elites (who are each given one of the 12 Relics and taught how to use them). It is considered a great honour to be part of this elite magical combat unit because members will be armed with great magical powers and will have the opportunity to leave behind their second class status, earn great rewards and glory, and become Honorary Imperial citizens.
Not everyone is happy with the Empire.
Some magic users create the Holstadt Restorationist movement and they plot to start a magical uprising against the Empire and restore a distant descendant of the Witch Queen to the magical throne of Europe. The Holstadt Restorationists are declared a terrorist organisation and the Imperials seek to eliminate the movement, forcing them to go underground. The Restorationists wage a guerrilla war against the Empire and are willing to target civilian as well as military and police personnel. There is an uneasy ceasefire after hundreds are killed on both sides but neither side expects this pact to last.
To try and gain an advantage over the Empire (before the Empire is ready to launch a comprehensive, large-scale crackdown), the Restorationists attempt to infiltrate the Imperial Elite Program. They are hoping to get one of their members to do well in school and training, get selected for the special program, and then get one of the most powerful Relics. This person would then be in a position to cause the Empire great damage, acting as a highly-placed mole and if need be, turn the Relic and fight directly for the Restorationists.
Lucy, a young magical prodigy (and gifted chess player), is born in a family of ardent undercover Holstadt Restorationists. Her parents are passionate about the rebellion and believe that one day the Empire will be overthrown but that sacrifices must be made.
From a very young age, her parents have pushed Lucy to work hard and to make the most of her unique abilities to the point where she had no real childhood. Nearly every hour of every day was devoted to study, practicing magic, playing chess, and learning "the real history" of what happened in the Great Magical Wars. She was told that her school was lying to her, the Witch Queen Annie was in fact a heroine who stood up for magic users, and that it was in fact the Alliance and the precursors to the Empire that committed all the war crimes.
As a teenage girl, Lucy was recognised for her extraordinary academic and magical achievements and was selected into the Imperial Magical Academy where there would be a chance that she could be chosen for the Elite program and get one of the Relics. While she was there, her school continued to teach her the Imperial historical perspective (where magic users deserve to be oppressed and treated as second-class citizens and need to atone for their historical crimes by being loyal Imperial subjects) while at home her parents pushed her to remember the "real history."
Eventually, Lucy was on the verge of being selected for the Elite program. Her parents are excited but they seem to underestimate the effects of her peers and the school.
At this point, Lucy reports her parents to the Imperial authorities. Based on her information, the Empire moves in and arrests a large number of Restorationists including her surprised and betrayed parents. Those captured are all shipped off to camps and never seen again.
After turning her parents to the Imperial authorities, Lucy appears to be shell-shocked and somewhat traumatised for a few weeks but eventually returns to normalcy, repeating pro-Imperial slogans just as before with conviction.
Now this is where you come in.
You are an Imperial officer on the board of the Imperial Magical Academy. You will provide a recommendation (that will be considered along with other recommendations) on who is chosen for this new round of the Relic program.
You are loyal to the Empire and believe the Empire's version of history; you want to help the Empire maintain control of the magic users. At the same time, you know the Relic program is important because it will help the Empire maintain a military edge over the other Great Nations.
The Imperial government asks you (along with others) whether or not to still recommend that Lucy join the Elite program.
Lucy is very clearly one of the most (if not the most) magically gifted individuals. In addition, she excelled academically, has displayed high intelligence and has a keen tactical sense. You have no doubt that in terms of combat and magical usage, she will be a huge asset.
However... there is the question of loyalty, both present and future.
Lucy has passed subsequent psych and loyalty evaluations. She insists that she did the right thing and that her parents were traitors to the Empire.
However, the Imperial government worries about how reliable these evaluations are and whether you think down the road, she may change her mind or grow resentful. If she's not to be selected, you must also provide a recommendation for what to do with her. Some in the Imperial government worry that having turned on her parents, she now carries too much "emotional baggage" to be completely reliable.
Your Options:
1. Reward Lucy for her displayed loyalty to the Empire with medals and titles. Let her join the Elite program. Keep a close eye in case.
2. Reward Lucy for her displayed loyalty to the Empire with medals and titles. However, don't choose her for the Elite program. She gets phased out in a lesser position and eventually gets replaced.
3. For all we know, she may have been a Holstadt Restorationist the whole time. Throw her into the camps along with her parents; this is part of the parents' plan clearly.
4. Other