Great information. You need to:
1. Remove the 1099-Q from your return since it is all a qualified distribution. IRS Publication 970, Tax Benefits for Education states on page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.
2. Scholarship income is earned income for purposes of deciding if a return needs to be filed. If her total earned income is below the filing threshold of $13,850 there is no need to file a tax return for your daughter. If it is over that, then you do need to file a tax return for her and she may be subject to the kiddie tax. Scholarship income is considered unearned income for purposes of the kiddie tax.
See- What is the Kiddie Tax? & About Form 8615, Tax for Certain Children Who Have Investment Income...
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