My miqo'te, Elza, also lived in isolation in the woods. This made her socially shy and awkward around strangers, but due to this she also kept to herself a lot, and her mom was not anything but a dancer, but she was literate and could read and write fine growing up in the city. So she had tons of time to teach Elza in the woods.
However, I did think about this before hand and I believe characters can be illiterate if your backstory makes sense.
However, I did think about this before hand and I believe characters can be illiterate if your backstory makes sense.