Was Mrs. Puff crazy?

 
Jono
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Goodness gracious, great balls of lightning!
In the episode where she goes to jail, Spongebob and Patrick are trying to get Mrs. Puff out but her stubborn ass won't go because she hates Spongebob. The thing that gets me is that throughout the episode, she's calling for the guards to get rid of Spongebob and Patrick but the guards just ignore them and call Mrs. Puff crazy. Was she really crazy and losing her mind thinking that Spongebob and Patrick were there but they really weren't?

If they're not really there and its just Mrs Puff's imagination, then why were Spongebob and Patrick trying to rob a bank to go to jail with her? Mrs Puff is in jail and couldn't have known what was going on in the real world so is she crazy after all or not?