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This scene is when Dolores the fourth child of Frank Sheeran was getting baptized by Rusell. It is at that very moment Frank was saying

Russell and Carrie baptized our new daughter Dolores. It was wonderful occasion and we were honored. Everybody showed up.

Then we see Peggy giving a weird look to some people. I guess they were gangsters as he said "Everybody showed up."

I am not able to understand what these looks are trying to signify and what role does it play in story telling. Is she skeptical, afraid or what?

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2

After the incident with her father beating the shop owner, Peggy is constantly alert towards her father and his cruelties. In this particular scene, she probably starts to see her father's peers for what they are. Since her stare comes right after the "Everybody showed up", it means Peggy already had signs from a young age about her father's association with the mafia.

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