Pretty much, though depending on the actions of the player, the timeline can get completely screwed up. In Chapter 3, if Valanice uses the magic statuette, you'll see Rosella hanging from the elevator shaft in Ooga Booga, which is where you left her. At the end of Chapter 3, Valanice is arrested. In Chapter 4, you help Rosella navigate through Ooga Booga and into Falderal, where the first thing you see is Fifi telling you that Valanice had been arrested, but that they let her go, which means she must have already had her trial and had put the moon back into the sky. That's all completely possible. However, in Chapter 5, if you use the magic statuette again, it'll tell you that Rosella is in the Vulcanix Underground. Obviously, this isn't when she's a troll, because previously the statuette showed that she had escaped to Ooga Booga, so it has to be when she returned to the Vulcanix Underground with the Troll King in the previous chapter, passing through Falderal in the process. The issue is that you use the statuette again at any time in Chapter 5, even before you've been pardoned.
So basically, Valanice can be told that Rosella is in the Vulcanix underground before she (Valanice) is pardoned, which is impossible because Rosella has to pass through Falderal in order to get there, and when she enters Falderal, she's told that Valanice has already been pardoned.
Of course, if you don't use the statuette again until after you've been pardoned and have left Falderal, then it's certainly possible that the two women just missed each other. So I guess this could be considered an oversight in development, which I guess would excuse it. Just depends on how you view it.