I don't understand something, please explain

FayeKane

Where did the ribbons come from? Who put them on the girls, and why? Georgie? And why in the world would a girl put one on when it means she can now get her head chopped off unless she wears the ribbon for the rest of her life? What was in it for the girls to wear one? Did someone hold them down and force the ribbons around their necks? Finally, what was the motivation of whoever put the ribbons on the girls? What secret did they not want the girls to tell?

Chilled

This is all revealed in Ep. 5...to avoid spoilers, there was a tale of a girl who wore a yellow ribbon (although the colour is debated) around her neck. It's a short tale, and simple, but the point is that the girl wore this ribbon for entire life, and fell in love to a man who trusted in her to never take it off. They grew old together, and on the lady's death bed, the man couldn't resist, so he pulled the ribbon off...and her head came off too.
How this relates to the story, you will find out, since asking these questions obviously means you haven't played Ep. 5 yet.