In Gen 20:12, Avraham is purposely coloring the truth. Avimelech had abducted Sarah, so Avraham told him that Sarah was his sister, his father's daughter, so the word daughter is used, not daughter-in-law (but he never said she was NOT his wife)
But here Rashi says that although Sarah was his BROTHER'S daughter and not his FATHER'S daughter, so that she was not his sister in the literal sense, Avrahams's statement was justified since "Grandchildren are considered as children" Thus he could call Sarah his sister in the accepted FIGURATIVE sense of the word.
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