How do I correct information on Form 8863 part3? It has my daughters name and school twice

Follow these steps:

1. Go back to federal deductions and credits. 
2. Edit the 1098-T. 
3. Keep selecting edit until you can determine if your daughter is in their twice or just the school.
4. Delete whichever parts should not be there. 

You can have multiple schools listed for one child. You should just need to delete the extra entry and double check your numbers. Great catch!