Katrina is the granddaughter of the Gepeppo the toymaker and daughter of Gepeppito.
Background[]
She wanted the doll she was playing with but her grandfather wouldn't let her have it saying it was for other children, and that she already had plenty of dolls of her own. Her grandfather kept an eye on her as she played while his son was in the back room working. He made sure she didn't get into trouble.
Behind the scenes[]
Incidentally Katrina shares her name with another Sierra character, the Dark Master, which appeared in the Quest for Glory: Shadows of Darkness (1994). Although there is no indication that the young girl in KQ5 had any influence on the characters name in QFG.