Xiao Yao gets her real face back.
Origin of the chapter's title
The title of the chapter, 所谓伊人，在水一方 (suǒ wèi yī rén, zài shuǐ yī fāng), comes from ode #129 The Reeds and Rushes , one of the most popular pieces in Classic of Poetry (Shi Jing), which is also known as Book of Songs and said to be compiled by Confucius.
所谓伊人，在水一方 can be translated as:
He whom I love
Must be somewhere along this stream.
Other translations can be found here.
OcKoala translated this title as A Beauty, At the Edge of the Stream.
Book 1 Chapter 17's poetry title is the continuation of Chapter 12's title.
Xiao Yao's real face is revealed.