I agree with most of dpg's unpacking of your story; except that, without knowing why the priest can't both save his niece and follow the rules of his religion (is there an inciting incident that would clarify that) or even what is the priest's religion, then how can we be sure that the devil here is truly the antagonist? Furthermore, you have the devil appearing after the priest finds himself in the dilemma of choosing his niece or his religion, so isn't the real struggle with the priest himself (perhaps with his faith or his own character). Finally, if the god and the devil you are writing about is actually God and Satan, then the devil wouldn't call himself a liar, but if he did, then the priest would not be confused by that statement, because he would already know and understand the character of the devil.