I remember her asking about necromancy but never necrophilia. I think a better source than uespwiki is needed to confirm this. She was a necromancer not a necrophiliac.
"I'm the only alchemist in Skingrad. Not much business here, but I can't go back to Morrowind. It's just like anywhere else in the Empire. By the way... do you happen to know what the fine is here in Cyrodiil for necrophilia? Just asking."
(after the reply "Uh...excuse me?"): "Oh. Nothing. I was just wondering."
(after the reply "No idea"): "Thanks anyway."
(after the reply "Is it the first offense?"): "Let's assume 'no'."
(then after the reply "Then it's at least 500 gold."): "That's nothing compared to Morrowind. Thanks."
The other residents of Skingrad have their suspicions about Falanu, and will comment that "Maybe it's just me, but I find Falanu Hlaalu really odd. And I've seen him [sic] hanging around the graveyard with a strange smile on his [sic] face."
This is from UESP, but it matches how I remember it.
Also, necromancy is not illegal in Cyrrodil, so why would she be curious as to the height of the fine?
Edit: Just checked it in game and the UESP is word for word correct. Falanu is a necrophiliac.