Im sorry to hear this. its too bad that someone made an assessment that she doesn't feel is accurate. PTSD and normal grief are two very different things, mental health issues are tricky as its very subjective, it seems that she could appeal this but that might mean reentering in the future - I don't have any suggestions but just wanted to write a message of support.
I think I would start by calling the recruiter tomorrow and ask him/her if there are options however you won't be able to guide your daughter from where you are at. I think its most important that you remember that things happen for a reason and possibly her second time around (i really don't think this will be the end of story) is what was meant to be. I work in the field of psychiatry (and i am prior service so i know how things work) and the wrong diagnosis is very plausible and i would think could be contested. Best of luck
I'm very sorry to hear this. Be sure to join Ship 5 Moms(Formerly Ship 17). You'll find more info there along with info to join the Facebook group (it's more active). Be sure to have your daughter list your name with legal so you can speak with them too. I hope things can be worked out - or she can have the opportunity to re-enlist.