Peter Molyneux stated, "We've got plans for Fable 3, 4 and 5 actually," he also said. "It's a big story arc and if you play Fable II you'll recognize things from Fable 1." No official dates have been announced.
This is old news. I had no doubt in my mind that Lionhead would return with Fable III, especially after the cliffhanger at the end of the terrible ending. (CONFIMATION: Fable II is a GREAT game, I just thought that the ending blew. The cliffhanger had me on the edge of my seat, however.)
If you played Fable 1, you'd recognise that Theresa, the blind woman, has the same name as the sister of the hero from Fable 1, who was also a blind seeress. You'll also recognise Oakvale, Bowerstone, and a few other things.
There has also been talk of the note that you recieve from Rose if you take the "Love" ending. Some believe that the person Rose is referring to in the letter is the Hero from Fable 1 (Since she didn't remember who his name was, and the Fable 1 hero had no name), Scythe (A hero from Fable 1), or even possibly Jack of Blades (The Main Villain from Fable 1).
Fable III will probably answer some of these questions. I just wonder what period it will take place in, since I highly doubt you'll be continuing from Fable II. It'll probably be several years later, in a new time period.
Wanna listen to me rant about stuff? I started a blog!
https://theloonybinblog.wordpress.com/