Quote HOT PINK: The Phillip III Jill raised is, in fact, the real Phillip chancellor III. Either Katherine's memory of switching the babies was part of a dream she had while in a drunken stupor, or she didn't actually switch the babies. Hopefully, we'll find out the answer soon.
You are right HOTPINK only other explanation is they really WERE SWITCHED and she immediately felt remorse and switched them BACK. She does remember running across a field with a baby in her arms could that have PC3 and she was on the estate? Could she have confused the two "differnt babies as OREO has suggested? Her own bio daughter's birth and the birth of JILL's baby PHILLIP? Or did she see a baby switch in a drunken stupor in a MOVIE and just confuse it years later. So many great possibilities. YUMMMMMMMMMMMMMMMMMMMMMM.