Well I think that her desire to have a relationship with her Grandfather is a good thing and an opportunity that you should capitalize on. I agree with the poster that said that she may be trying to identify or seek out family that will be supportive of her and her new found identity.
If it were me I would persue the relationship and try to develope the connection with my bloodline. I know that I can benifit my children's children dispite what they have been brainwashed to believe. I would also be firm. I would make sure that they knew what I felt was acceptable behavior for a 16 year old addolescent. Most importantly I would share my love...my whole hearted, unadulterated love for my grand child, because in the end that's all that really matters.