I'm 64, my wife is 58 and we withdrew from both IRA's in 2023. Hers is subject to 10% early withdrawal penalty. Can I return her distribution to avoid the penalty?

If more than 60 days have passed since the withdrawal of the funds from your spouse's IRA, then you can no longer return them. Within the 60-day period, it would have been a rollover, which isn't taxable.

Sorry no.  Unless you took it out in December.  You have 60 days to return it to the IRA.  And you need to add back in any tax withholding from your own money.