This feels like Lynch in more ways than one. Just like in Mulholland Drive, we're inside the guilt-ridden mind of a murderer. Since she couldn't cope with killing her lover, she invented a whole SF plot where things and people from her real life had new roles. It seems that she completely slipped into the fantasy world after the inspector raped her in the cabin. Many things are unclear, though. There are some hints that complicate things a lot. For example, during the rape, she bites the young inspector's ear. But the old inspector, who supposedly died while the young one was in coma after the rape, clearly had an ear bitten off.