Yes, she must file. Look at the rules for dependents with unearned income.
The internship is considered part of her education. That means it is not considered "work", and is not subject to social security or medicare tax (self-employment tax). It should be reported as a scholarship, or you can use "hobby" income in Turbotax, it is not self-employment on schedule C.
However, the downside to being income not earned from working, is that she is subject to the "kiddie tax". This tax was mainly created to tax investment income at a higher rate, so the parents couldn't get a tax break by putting investments in a child's name, but it applies to all unearned income.
https://www.irs.gov/taxtopics/tc553
