Answer:
No, Peter Fonda did not act in "The Wizard of Oz."
Specifically, filming of the movie began in late 1938 and lasted into the first part of 1939. Peter Fonda was born during the filming, on February 23, 1939. So the movie still was being filmed at the time of Fonda's birth, but he was too young to have a part in the beloved 1939 movie version of "The Wizard of Oz."