Former Caterpillar Believed to Embody Spirits
Puzzle 4 of Day of the Dead Hard Pack
Question is: Former Caterpillar Believed to Embody Spirits
and the answer is: BUTTERFLY
Word Meaning:
BUTTERFLY — A flying insect of the order Lepidoptera, distinguished from moths by their diurnal activity and generally brighter colouring.
Definitions from Wiktionary.