Link defeats Ganondorf after the Demon King becomes the Demon Dragon. The Light Dragon carries Link through the battle, making Zelda an active partner even while her human consciousness appears lost. Rauru and Sonia channel their power through Link, restore Zelda's human form and return Link's original arm. Link catches Zelda as they fall, reversing the separation that began the game.
What it means
Zelda and Ganondorf both choose draconification, but the parallel separates sacrifice from domination. Zelda gives up control so another person may act; Ganondorf gives up personhood because he cannot accept a world outside his control. The kingdom is saved by connections across peoples and eras. Link is central, but every power he carries is somebody else's trust made usable.
consequences
The final dive works because it reunites the story's two timelines in one physical act: Link catches the person whose choice has carried him through the entire adventure. The ending is best read against the earlier turning points: it does not erase their damage, but shows what the protagonists choose to carry forward after it.
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Where this comes from
Every sentence above is built from facts confirmed by at least two independent sources. Sources used: Nintendo, Wikipedia, IGN.