I can believe both, easily.
Keyes is clearly a hypocrite since he commented on Cheney's daughter without acknowledging his own daughter was the same. Saved him some embarrassment during the campaign.
I also consider his reparations explanations disingenuous.
I don't have enough data, but what I do have leaves room for the daughter to be disingenous also. I'd like to know who funded her trip, since she had been fired and was also "homeless".
You don't know that. She claims he's known since finding a gay-friendly publication in her room in high school, but I can easily see that as an unjustified inference on her part. Particularly since she also states in the WP article everything was peaceful as long as she kept her opinions to herself. I can easily see her shutting down on the politics part before she ever got to the "I'm a queer" part.
Also by her own admission when he actually confronted her, he used the exact same phrase he claimed he would use when speaking about Mary Chenney.
I see a much better case for paternal denial than for hypocrisy.