Penny is a resident of Little Lamplight that has been taken captive by the Slavers at Paradise Falls. If the player rescues her from Paradise Falls during the Rescue from Paradise quest, her brother Joseph will have a much higher chance of helping you gain access into Paradise Falls.
Penny refuses to leave Paradise Falls unless the player can get Rory Maclaren out too. The player can convince Penny to leave Rory through a Speech check. Upon failing the Speech check, the player must get Rory to safety.
Penny's real name is Penelope, but it is too long for the other members to pronounce.