Terra's been looking around, for as many people as she can, when she happens upon Hiccup and his partners. People are exchanging gifts all over the place, so she's slowly gathered what she has, in bags mostly, and she carries Hiccup's now. Why not approach him with it then?

It's due to the angle, or the block of wood, or maybe just not noticing that she misses a tell-tale sign that her gift is very misplaced...but alas, she walks up to him anyway.

"Wow, quite the operation you've got going here."