Pan's Labyrinth is definitely in Spanish. As far as I know, Guillermo del Toro only has directed movies in Spanish and English. And there's the fact that Pan's Labyrinth is set in Spain.
I've never had issue with the subtitles on it. It's not like there's a lot of fast paced action. And most of the scenes where there's sets and make up to enjoy, there's enough quiet to enjoy them.
And as for whether the events are real or not, the movie leaves it open ended for the viewer to decide. But I think that Guillermo del Toro himself is of the opinion that everything happened.
I've never had issue with the subtitles on it. It's not like there's a lot of fast paced action. And most of the scenes where there's sets and make up to enjoy, there's enough quiet to enjoy them.
And as for whether the events are real or not, the movie leaves it open ended for the viewer to decide. But I think that Guillermo del Toro himself is of the opinion that everything happened.