at the end of this episode as ben and whidmore are talking,
ben says he is going to kill his daughter.
whidmore says you'll never find her.

then the conversation shifts to the island.
they tell each other that the other will never find it.

So, where is Penelpe that she can't be found??????

she is on the island with Desmond while that bedroom conversation between Ben and Whidmore is going on.