When asked "How are your family?" in an email, can you reply "We are fine"?
Or is it more proper and natural to say "They are fine"?

Apple.
Original Post
Both are appropriate.

"We," of course, is more inclusive and might indicate that the speaker thinks of himself/ herself in terms of the family:

A: Hi, David, how are you?
B: Fine, Kim, How are you?
A: Fine, thanks. Your family?
B: Oh, we're all fine. We're going on vacation next week.

"They" would more likely to be used if the speaker is far from his family:

A: Hi, Sydney, how are you?
B: Fine, Chris. How about you?
A: Fine, thanks. Your family?
B: Oh, they're all fine. Timmy won an award for soccer and Elisa is taking ballet lessons. I just wish I didn't have to be on the road like this so much and could be at home with them all the time.
_______

You could also say: "Everyone's fine, thanks."

Rachel

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