Item number 3 reads: "More than the larger of..." So in your scenario 3b = earned income $1 plus 400 for total $401 however that is not larger than 3a which is $1150.
So she could have earned income up to $12,550 and unearned income below $400 and still not have to file.
[edited 2/6/2023 12:24pm PST]
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