Is this someone you personally know which you can verify is indeed in Brazil? Or is this someone telling you they are in Brazil and in fact you do not know where they are? If this is someone telling you one thing and you see evidence it is not true, then you have the evidence you need not to trust them I would say.
emails may take several hops to get to a destination. Hotmail has multiple servers. They use them to improve message handling. It is possible that this particular message went through a server in Germany. I rarely trust geolocating IP addresses unless you can confirm that the address definitely belongs to a registered owner. IP addresses may be spoofed or mail relay may actually hide the address of the sender.
Although I have never seen that the several hops that a messages take to get to destination change the originating ip-address on the message header, there are other ways to “hide” the real origin of mails or any activity that you do on the internet, for example, using the Tor network.