Bethesda added a selection of your "origin". In original Oblivion, your gender gave you either extra strength (male) or extra agility (female). In the remaster they moved it onto "origin", while "body type" selection does nothing.
If you select the origin that gives you strength, then NPCs will address you as male. If you select the origin that gives you agility, then NPCs will address you as female.
If you select the origin that gives you strength, then NPCs will address you as male. If you select the origin that gives you agility, then NPCs will address you as female.