Rules FAQ
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Calm as Still Water can save from terminal burn (for instance, Dracarys!), because returning the character to hand is considered to remedy the ongoing terminal condition. (Source.)
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You cannot play this event if the character “cannot be saved”. (Source.)
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You can play this event to save an opponent’s character if you wish. You can potentially prevent the opponent from using their own save that would keep the character in play (for instance, Maester Aemon (Core)). However, if you do this with a character that has a duplicate, the opponent can then use that duplicate to save the character from being returned to hand instead.