A used Terry, if she could find one, would work. I am 5'2" and rode the 17.5" size. Depending on her inseam and body proportions, she'd likely need a 16" or the 17.5" at the top end. This is the road bike sizing, not sure about the Terry hybrids. They sometimes show up on ebay and are good bikes. There are other options, of course, but whatever she gets, make sure she can stand over the top tube and have an LBS size it for her, or she may be uncomfortable and unhappy. The key is to make it fun for a new cyclist.
There are other small bikes; this is just one idea. Good luck!