You can liquidate without the 10% early withdrawal penalty. That option is available to all inherited IRA beneficiaries and is not based on disability.
There is no exception to the tax due. Any distribution will be taxable (unless the original owner had a cost basis, then it would be partially taxable)
If you choose to leave the inherited (beneficiary) IRA in place ( or transfer it to a different financial institution), you will be require to make annual minimum required distributions (MRD or RMD). You cannot rollover an inherited IRA to an IRA in your own name
