I'm guessing more the latter two choices. There isn't much of a city here to talk about. And the Malnosso don't sound benevolent enough for this not to be a pen. Or a prison either.

[Then she offers a shrug of one shoulder, nonchalant as ever.]

If you want to know more, ask Trunks. He can't seem to keep his mouth shut anyhow. If anyone knows I bet he does.