I saw a Barbie that looked like her and even though she was singing in German, the tune was the same. This is Princess Luciana from the movie Barbie and the Island Princess. She sings "A Love That's Always There" from the movie. The arm is hinged so she can hold the cat that came with her.
VERY distressed Barbie.
The help! Who is she? She has one arm that is hinged at the elbow and the jewel on her necklace is a button. She takes three of the small batteries and has a small square on her back above the battery box which makes me think that she might be a fairy Barbie.
~Who is this lovely lady~