"Go Tell Aunt Rhody" originated as as an English folk lore song from 19th century America while the tune originates from 18th century France. The tune comes from a gavotte which is a medium paced dance that was popular throughout 18th century France.

https://www.youtube.com/watch?v=v4vxDJKjoBI
https://www.youtube.com/watch?v=QzCyF0lrioc

The video on the top is the original song and the video on the bottom is "Resident Evil's" remix. I will also post the lyrics here for anyone that would like to compare the lyrics side by side.
The lyrics in parenthesis are for the original song


Go, tell aunt Rhody (Go Tell Aunt Rhody,)
Go, tell aunt Rhody (Go Tell Aunt Rhody,)
Go, tell aunt Rhody (Go Tell Aunt, Rhody,)
That every-body's dead (The old grey goose is dead.)

I was raised in a deep and dark hole (The one she's been saving)
A prisoner with no parole (The one she's been saving)
They locked me up and took my soul (The one she's been saving)
Shamed of what they'd made (To make a feather bed.)

Go, tell aunt Rhody (The goslings are weepin',)
Go, tell aunt Rhody (The goslings are weepin',)
Go, tell aunt Rhody (The goslings are weepin',)
That every-body's dead ( Because there mammy's dead. )

I call to him and he will come (The gander is mournin',)
She'll answer him like he's the one (The gander is mournin',)
His arm's outstretched, but when she's done (The gander is mournin',)
He'll be torn apart (Because his wife is dead.)

Go, tell aunt Rhody (She died in the mill pond,)
Go, tell aunt Rhody (She died in the mill pond,)
Go, tell aunt Rhody (She died in the mill pond,)
(from standin' on her head.)
Go, tell aunt Rhody
Go, tell aunt Rhody Go tell Aunt Rhody,
Go, tell aunt Rhody Go tell Aunt Rhody,
That every-body's Go tell Aunt Rhody,
Every-body's The old grey goose is dead.
Every-body's
Dead

An article from "Pc Gamer" consists of an interview with Michael A. Levine who is the composer of "Aunt Rhody" where he discusses the creation of the song.
Here is the link for the article but I have included it below:Micheal A. Levine Aunt Rhody interview(transcribed)

• Pc Gamer: Resident Evil 7: Biohazard was announced at E3 in 2016. When did you first begin working on the 'Go Tell Aunt Rhody'?
  
  Michael Levine: I’ve forgotten when they first contacted me, but once we agreed on a direction I did most of the work in Spring of 2016.
  
  
• Pc Gamer: What was Capcom’s initial directions for the song, and did those change as the creative process began?
  
  Michael Levine: They liked the work I had done (with Lucas Cantor) on Lorde’s version of Everybody Wants to Rule the World which was featured in both the Hunger Games Catching Fire soundtrack and the Assassin’s Creed Unity trailer. They wanted a similar rethinking of a familiar song, turning it from joyous to menacing. But they didn’t want to use a pop song, so that meant finding a traditional song that would be known in more than just one country.
  
  I was born in Tokyo and so, almost by accident, knew that the American traditional song Go Tell Aunt Rhody had the same melody as the Japanese 'Musunde Hiraite'. Plus Rhody had the key word "dead" in its lyric. I changed "the old grey goose is dead" to "everybody’s dead" and we were off and running!
  
  
• Pc Gamer: Go Tell Aunt Rhody is featured on the trailer and has pretty much become the theme for the whole game. Did you have any idea when you first started working on it, that it was going to be featured this much?
  
  Michael Levine: No, but I am delighted Capcom had such confidence in it.
  
  
• Pc Gamer: This song has a very interesting history and origin that not many people know about. Can you tell us a little bit about that?
  
  Michael Levine: We know the chorus melody was used in a French opera in the mid 18th century, although it probably predates that. It traveled from France to the UK, to the US, and, eventually, to Japan in the 19th century when American schoolteachers were brought to Japan to help establish the public school system.
  
  Most Japanese people think Musunde Hiraite is Japanese in origin. I added the RE7-specific verse.
  
  
• Pc Gamer: I read that the song’s vocalist, Jordan Reyne, is located in the UK and you are located in LA. Where did you all record the song and how did that process work?
  
  Michael Levine: We recorded everything but the lead vocal in my studio in LA. Jordan—who is another fabulous New Zealander like Lorde (I have good luck with those kiwis)—recorded in the UK and we communicated via the internet during the session. Our clients also attended via the web.
  
  This was ok for me—10 am in LA, and Jordan, 6pm in London; but I am impressed by the stamina of our clients at 2am in Tokyo!
  
  
• Pc Gamer: What surprised you the most with Go Tell Aunt Rhody after it was all done?
  
  Michael Levine: How well it worked with so little traditional musical framework. Our first pass was much more of a straight-ahead song, but the clients kept asking for it to get weirder and darker to the point where it’s almost an art-house sound-design piece.
  
  Usually, I do something 'out there' and the client has to reel me back in. This was one of the rare cases where they kept saying, "Go even further!" I love to work for people like that!
  
  
• Pc Gamer: Is it easier to come into a project that has a huge fan-base, such as Resident Evil, or one that has a clean slate?
  
  Michael Levine: I think my relative ignorance was a blessing. Had I truly understood how massive the following of this game was I might have been intimidated.
  
  
• Pc Gamer: If there is anything else you would like readers to know about your process creating this song, then please do share.
  
  Michael Levine: I am rather fond of puzzles and what I like to call cryptomusic—where there are things embedded that may not be obvious on first listen. I am not saying that is the case in this song.
  
  But I’m also not denying it.
  
  

So the statement Levine left explaining theirs a possibility the song could have hidden messages and secrets left fans hunting them down within the song.

In the Reddit post "A secret message in the Aunt Rhody song" by: Asthetic Gamer the user's girlfriend explains and proves some hidden messaging in the song.

"So, I don't know how important this is, but my girlfriend has been taking a recent interest in RE and was looking into the RE7 demo stuff. She's mentioned to me that the 'Aunt Rhody' song in the trailer is backmasked and decompiling it and pulling it apart, it has a lot of secrets in it.

She has a history in music, and mentioned the song has unnatural pitch tones and what sounds like messages split apart, reversed, and put to different pitches to mask them. She showed me some progress, and she's right. There's some that just sounds like screams, but she so far has put together part of the pieces, and it sounds perfectly put together like, "in the woods".

I don't know if this is related to anything, but she's been looking into it as interested, and as she tells me, there is definitely hidden messages backmasked, fragmented, and pitched in the Resident Evil 7 Aunt Rhody song cover.

She also mentions how some of these cut out at the peak amplitude and come apart is further evidence they're cut and fragmented.

A message from her on this which led her to look into this:
the phone messages I think were a clue
the fact that the clock was 120 bpm, along with the pulse/tempo maybe the heart 60
it was I feel a big hint"

images of the backmasking.
https://cdn.discordapp.com/attachments/187467466278961152/194286460659171329/yup.png
https://i.gyazo.com/177c1f299bc5ef207993058ec16955d0.png

A reversed and slightly edited version of the song
https://soundcloud.com/ryan-stanford-3/backmask

"Doing more digging, but some of the most interesting stuff is towards the end (or, beginning). Something that sounds like a heartbeat, screams that are quiet but increased in audio (warning, some startling) one of the audio stuff spliced together sounds like she's saying, "What's up, my name is ______(disgruntled sounds). In the woods, can you hear (disgruntled). In the woods, I was (screaming sound)."

Putting more of it together. Some words from her:

"rips headphone users

isn't it funny

no jumpscares forwards

yet backwards?

hear the heart change?

not only that

the heartbeats got louder

and on the soundwaves look almost like the readings off an ekg

this may be useful so they see the timeline"

Timeline of the edited variation of the song
https://i.gyazo.com/d023f9f102a763e02580b4205b7433d7.png