Dried up pellets of fecal matter. It smells pretty bad...
Peter's Droppings is an item found in the Filth Room after locating Amanda and discovering Peter is missing. It is used to track down Peter.
Many droppings can be found in the Filth Room, equivalent to Jennifer's room in the orphanage. It could signify Jennifer was the one charged to clean Peter's faeces. This could also mean that Peter's droppings have been used in a sick joke towards Jennifer.