One possible fanfic could start like this: In the dark and gritty Arkham City, Penguin's daughter, let's call her Ophelia, has grown tired of her father's criminal ways. She decides to secretly help Batman in his fight against the villains. One night, she leaves a clue for Batman in the form of a riddle that leads him to a hidden stash of Penguin's weapons. She hopes that by doing this, she can start to make amends for her father's misdeeds.
One motivation could be a desire for redemption. She might see how her father's actions have hurt the city and want to make it right. So she could be secretly working against him or trying to change his ways.
Penguin Fiction is a category that includes a wide range of fictional works published by Penguin. It could be novels, short stories, etc. Penguin has a long history of publishing great fiction from various authors around the world.
In some comic storylines, Penguin's sexuality might be depicted as such, but it depends on the specific comic and the creative choices of the writers and artists.