Afraid of Puppies?

I took Molly to a dog event yesterday where there were a variety of dogs, some on leash and other off. All the dogs, probably 15 total, were mellow & well behaved & Molly had fun meeting several different dogs, including a huge Newfoundland. However, when a tiny Shih Tzu puppy moved towards her, she shied away and wouldn't go near it. No more than one moved toward her at a single time so I don't think she was overwhelmed with the number of them. These pups (5 in all) were tiny fluff balls & not making much noise. Is it possible she didn't understand that it was another dog coming towards her? They did look very "gremlin-like" and so I was wondering if she wasn't sure what it was.