gnome vs faerie

gnome and faerie both are nouns.

Word	Noun	Adjective	Verb	Adverb
gnome	Yes	No	No	No
faerie	Yes	No	No	No

As nouns, faerie is a hypernym of gnome; that is, faerie is a word with a broader meaning than gnome:

gnome: a legendary creature resembling a tiny old man; lives in the depths of the earth and guards buried treasure
faerie: a small being, human in form, playful and having magical powers

Other hypernyms of gnome include faery, fairy, fay, sprite.

gnome (noun)	faerie (noun)
a short pithy saying expressing a general truth	the enchanted realm of fairies
a legendary creature resembling a tiny old man; lives in the depths of the earth and guards buried treasure	a small being, human in form, playful and having magical powers