Usually, you would have that be a row of backsplash tile.

Not sure without seeing more but how about tiling that entire section of wall with the backsplash tile (floor to ceiling or top of upper cabinets)? It's fairly narrow so shouldn't be too much added cost. Looking at the pic, there's all sorts of elements that don't line up, that would make stopping the backsplash anywhere look like a bit of a mistake.

The granite edge will stick out about and inch or two past where the row of backsplash tile ends. It should be fine. But need more pictures to really help. Is this a peninsula or desk? Please post pics of the whole room.

Just tile the back wall. Nothing on the side wall.

What did you end up doing? I have a similar situation in our kitchen