Grandmother
Old Woman, Old Lady
noun
An old woman, even with an honorific and an お is still an old woman. She might be your grandmother as well, though, so be nice!
Even if she is your grandmother, something is wrong. You look closely at her face. She's a sheep! Baa! (ばあ).
この度は本当にご愁傷様です。あなたのお婆さんはとても素敵な人だったので、あなたのお爺さんの代わりに私が一緒にいられればいいのにといつも願っていたほどですよ。残念ながら願いは叶いませんでしたがね。
I am so sorry for your loss. Your grandmother was such a nice lady that I always wished she was with me instead of your grandfather. Sadly, my wish never came true.