Theory:

Meanings of the difficult words from the lesson "Taro's Reward":
 
Sl. No.
Words
Meanings
1
WoodcutterA person who cuts down trees or branches.
2
LonelyEmpty; without many people.
3
HillsideA part of a hill between the top and the foot.
4
ChoppedCut into pieces.
5
Earn
Make money
6
ThoughtfulCaring; understanding; kind.
7
BlowMovement or production of air.
8
Whistled through Passed through with a whistling sound.
9
CracksNarrow gaps/openings
10
Saké A popular Japanese drink (‘sa’ is pronounced like ‘fa’ in ‘father’ and ‘ke’ rhymes with ‘way’) 
11
WarmComfortably high temperature; not too cold or hot.
12
Do my old heart good Doing one's heart good means making someone feel happy.
13
Heart-warming Pleasant; satisfying
14
Drink Something to drink like water or juice; and in the lesson it refers to sake. 
15
ExpensiveCostly.
16
PoorPitiful; unhappy; generally means 'without wealth or money'.
17
Jumped outGetting up quickly.
18
Made his way to Went to.
19
Sun climbedThe sun went up in the sky; it also means that sun is shining well and it is getting hotter.
20
Warm the old man’s bones
Making him feel warm; make him comfortable.
21
PossiblyHopefully; may be.
22
RushingMoving with speed; flowing fast.
23
Stream
A small or narrow river.
24
Axe A tool used for chopping wood.
25
DroppedLet go; released.
26
KneelingSitting down on our knees. 
27
FlowSteady movement.
28
Cupped a little in his hands
Took some water in his hands (as if in a cup).
29
DeliciousVery tasty.
30
PitcherJug; container;  a pot usually made of mud.
31
DelightedVery happy.
32
PolitelyIn a respectful manner.
33
GreedilyAs if desiring more and more.
34
Hurry
Do something more quickly.
35
Nightfall Late in the evening; sunset.
36
Long ProcessionLong line of people; a number of people moving forward in an orderly fashion.
37
VisitorsGuests.
38
IntendedPlanned.
39
HoldCarry.
40
Held
Here it means kept his mouth under the waterfall.
41
TrickedFooled. 
42
DrownDropping into water.
43
Wise
Clever; intelligent; practical.
44
SlipGo or move quietly or quickly, without attracting notice.
45
MutteringSpeaking unclearly.
46
DisappointmentSadness or displeasure caused by the non-fulfilment of one's hopes or expectations.
57
WonderedAsk oneself.
58
Fine Of very high quality.
49
Thoughtful sonA son who gives importance to the welfare or comfort of his parents.
50
EmperorKing; ruler; monarch.
51
Sent for Called.
52
Rewarded
Gave prize.
53
Pieces of goldGold coins.
54
FountainA small waterfall.
55
Naming fountain after TaroGiving the fountain the name of Taro. Naming someone after someone means to give them the same name. It is known as eponymous.
56
EncourageGive support, confidence, or hope to (someone).
57
HonourRespect.