You can choose to treat her as a US resident (follow the instructions for the statement that will be required to be attached to your return).
As far as documentation for W7, please follow the instructions . They used to accept notarized copies of passports, but the process changed a few years back. You can submit copies of original documents if you do any of
the following.
1 Have the copies certified by the issuing agency.
2 Have the officers at U.S. Embassies and Consulates overseas provide certification and authentication services. (Contact the Consular Section, American Citizens Services of the U.S. Embassy or Consulate in advance to determine the hours of operation for these services.)
