No, she does not need to file a tax return for 2020 given that the had no "income". Even if she had a little, she'd only want to file for any withholding to get back in a refund as she'd have to have made more than the standard deduction in 2020, which for her would be $12,400 for 2020 tax year.
As for the 1098-T, you did the entry correctly. You are all set.
