Here's the best I can make from the CD. The word before gallows is not "other" as Kevin writes. And it isn't "try" after that (Sounds more like "buy").

Now where do you fare and what is that you bear?
Said the false knight to the child in the road
Now, nowhere do I fare and nothing do I bear
Said the pretty little child only seven years old

What is that upon your back in your brown heavy sack?
Said the false knight to the child in the road
I have books upon me back in me brown heavy sack
Said the pretty little child only seven years old

Tell me what is on your arm 'less you want to come to harm?
Said the false knight to the child in the road
I've have peats upon me arm that I got out at the farm
Said the pretty little child only seven years old

What is higher than a tree, what is deeper than the sea?
Said the false knight to the child in the road
Heaven's higher than the tree, Hell is deeper than the sea
Said the pretty little child only seven years old

Oh I have a gallows high and a rope to swing you by
Said the false knight to the child in the road
If you want to swing me high ???? gallows you must buy??
Said the pretty little child only seven years old

I've a bird without a wing and a song that doesn't sing
Said the false knight to the child in the road
Like the bird, I'll take the wing leaving you the song to sing
Said the pretty little child only seven years old