Small amounts of pencil are safe on fondant. I am artistic but also a perfectionist so I cannot draw without an eraser. Anyway, this is how I transfer my artwork after drawing them. I'm going to assume you are printing your images. First, print art in the mirror layout. That is an option your printer will give you. Next, take a pencil and trace over the parts you need on fondant, the outlines of art. Trace heavy, trying to keep lines thin especially in detailed areas. Now you are going to flip paper over on fondant where you want it, making sure to get placement right the first time because pencil will smudge on to fondant. This is the tricky part... keeping paper still while tracing. Theres no do-overs. Before flipping paper onto cake you can wipe a little shortening on a clean part of paper in a few areas and when you flip paper onto cake press this area good and paper won't slide as easily. Now that paper is on fondant gently trace back over the areas you outlined with pencil. You should be able to see these spots because you traced pretty hard on the other side and the backside of paper will be raised now. Don't press to hard when tracing because if fondant is soft it will leave an impression and if fondant is hard it may crack. When you pull paper up there will be a light pencil copy of image on cake. Now you can paint over pencil. Of course this only works on light colored fondant. Hope that helps.
~Kim