Season 5, Episodes 3: Q & A
Q: Who is Penny's Child?
Penny gave birth to a child named: Charlie...aka Charles Widmore. Then they go back in time on the island to around the year 1930 with young Charles Widmore. At some point, Penny and Desmond die, and then Widmore grows up on the island. Eventually, he is exiled and then leaves the island, marries Mrs. Hawking and then gives birth to Penny again, creating a loop. Note in season 4, when Ben sneaks into Widmore's room in the night. Ben: We both know I can't kill you, so I'm going to kill your daughter. Ben says this because he knows that he will be "indirectly" killing Widmore if Penny dies, thus she cannot go back in time with Charles for a second time - in other words, Ben would be altering what is supposed to be written in the past, thus creating some type of paradox. This all goes back to the notion that Widmore was responsible for killing Alex back in season 4. Perhaps... Alex was Ben's mother as well?