Both Penny and her Dog, Bolt, star in the television series of Bolt. Although Penny was completely aware of it being a television show, her dog thought it was real-life happenings and he actually had powers.

Here's a quote from wikipedia:
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A girl named Penny and a dog named Bolt star on a hit television series called Bolt in which the titular character has various superpowers and must constantly thwart the evil plans of the nefarious Doctor Calico.
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Source(s):
Watching the movie

http://en.wikipedia.org/wiki/Bolt_(film)


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