Why is Caroline assumed to be the mother of William?
Purely because of the 1871 census where William has an aunt, Hannah Mallars, in the household - and Caroline has a matching sister Hannah.[3]
What happened to Caroline? (and Daniel for that matter)
Sources
↑ Baptism (16 Jul 1809) Caroline to George & Mary Mallars, St Mary, Lambeth, Surrey, England,
↑ Baptism 11 Jan 1835 William Mallars as son of Daniel, laborer, and Caroline FITZAUSTEN, resid. New Cut.
For this to fit, however well the names work with census and certificate data, it would have to be a late baptism as census data places William Mallars Fitz AUSTEN as born Lambeth around 1829.
There is no birth date given on the baptism entry.
↑ 1871 Census Mile End Old Town, Par. of Trinity, Borough of Tower Hamlets, LND, RG10; Piece: 561; Folio: 110; Page: 46; Sched. 266; hsehold of William & Sarah AUSTEN, image available Ancestry.com
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DNA Connections
It may be possible to confirm family relationships with Caroline by comparing test results with other carriers of her mitochondrial DNA.
However, there are no known mtDNA test-takers in her direct maternal line.
It is likely that these autosomal DNA test-takers will share some percentage of DNA with Caroline: