There certainly was a Peggy of Lettermore of whom the song was written. She was Peggy Folan, wife of Thomas. She lived at Brandy Harbor, born circa 1820 -1830. Her mother wrote the early verses which were added to later. Some of her children migrated to the U.S. circa 1880, including the parents of my grandfather. They all taught the song about their mother to their children. One of whom was my grandfather, Joseph Patrick Foley, born in Boston after his parents emigration from Lettermore on the Helvetia.
My mothers cousins, in their 80's, thought the song was one sung by school children and did not know until a trip to Ireland in the 1980's (?) that the song was traditional music.
I have met Peggy's family still on Lettermore who were very gracious to me as a descendant of Peggy Foan and showed me her ruined cottage.
There are keepers of the history of Lettermore on the island who are aware that Peggy was Peggy Folan.