Personally, I feel that a +3 is justified. Namely, only +1 for knowledge of the catch. Don't agree? Ask a random person how much they know about faeries, the mythological creature, and ask them if they know anything that hurts them or that they just don't like. I'm willing to bet that they will have heard of faeries but have no idea that iron is the weakness shared by most or all faeries. It's common knowledge for those who know more than just a little about faeries, but the average person on the street won't. That, and a lot of faeries can take many forms, including that of humans, if only using Glamor. So it makes it harder to distinguish.
Though, if you and your group decide +4 is appropriate, that's fine. No harm in that. Well, except maybe to the Fae!