Oh, it's the "Real McCoy" alright. Here's another one for sale by a fellow N54 contributor:
https://www.etsy.com/listing/2017660...d_out_detail=1
There would have been three pairs of tassels, originally.
The graphic looks like a photograph because of a revolutionary process this maker utilized for reproducing the same image, over and over again, on a felt or cloth medium. I'm not 100% sure, but I think this process involved engraving the negative image on a metallic plate; then transferring the image to the felt/cloth applique via ink by pressing the two together. It was cheap; you could make thousands of identical images in no time; and the level of detail was astounding (hence the appearance of a photograph). It was done a lot like how early printers printed newspapers.
Maybe you can tell us whether the applique was sewn to the felt, or glued? I've never been sure.
Also, if you want to display this, rather than restoring it, consider laying brand new felt beneath it that matches your pennant's colors. When viewed from a distance, it will look like one, cohesive pennant. It's much cheaper this way; and, you won't have to mess with the integrity of the pennant, which I think is important for a piece of this age.
Whatever you decide, post some pictures! Beautiful piece. Glad it's coming home.