Yes, you got it correctly.
Just to be sure I am not missing anything, how much was the 1099 NEC and what is the $3500 "check for attending admitted student day" On what form was it reported and what did she do to earn it?
As you will see what you do the 8615, the standard deduction is $1150 and the next $1150 is taxed at her tax rate. It is only the amount above that which is taxed at your rate.
