In Regenshein town look for Theletar Bariel (map coordinates 3557,610) near the Auction House.
He will tell you about the Pran not getting exp with it's current form and must evolve.
When you get the Fairy's Holy water it will look like a potion bottle with a different color (sorry I couldn't get a screenshot of it because I was uber excited to get my Pran evolved XDD). Then report back to Theletar Bariel and let your fairy get evolved (^__-)
Well~ I know, she's shy because she's only wearing her undies XDD