You can't do anything to make the interest not taxable. The fact that she had $0 tax liability over the past 5 years means she will not be subject to the underpayment penalty. When you get to the end, be sure to answer the questions about the underpayment penalty and enter that she had $0 tax liability in 2023.
Depending on what other income she has, and I am assuming she has Social Security Income which now depending on the amount of other income, can be up to 85% taxable. An unexpected lump sum of money can produce a large tax liability that cannot be reduced, however it can be paid over time if one cannot afford to pay it all at once.
If she is unable to pay the taxes, you can apply for a payment plan so all of it is not due at one time.
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