She asks: “Is homeschooling her or reschooling her the best option for her to have a fresh start?” What can we tell her?

This is certainly one way to reduce potential harm. School settings are a cauldron of intense feelings and mixed agendas, and are a frequently targeted arena for mischief by the interlopers because people are coming together and bringing all of their own personal foibles, vulnerabilities, and shortcomings that can be exploited to stir up karmic rumblings and to victimize people. You cannot protect the young forever, but during the formative years of youth it can be crushing to be in a difficult arena, perhaps bullied by classmates and even teachers. Homeschooling is an ideal way to shelter vulnerable children from the slings and arrows of their peers who are still unformed, lacking in maturity, and often well-established morality and self-control.