A few related questions that you may want to consider as you are forming your answer:
Should there be requirements for transgender athletes to participate, such as transitioning prior to puberty, or taking testosterone reducing drugs?
Should all female athletes be tested for testosterone levels (currently only intersex athletes are subject to testing) and if so, is there a level at which a cisgendered woman should be penalized or prohibited from competing (not all women have the same level of testosterone)?
Bonus thought, what about cis-gendered men with natural testosterone levels that are abnormally high. Is it fair to other male competitors?