I was in a very similar situation as a college sophomore. The only difference was my parents absolutely left me no choice. In my case, School #1 had such a better reputation than School #2 that my father believed it would be detrimental to my future career prospects. Hence, he demanded I stay at School #1. Long story short, it sucked in the short term but by the end of sophomore year, things really started moving in a positive direction. By the time I graduated, I was grateful that I had stuck with School #1.
This isn't to say that your DD should stay, OP. It's just to let you know that her "fear" may in fact be something else. She may know deep down that she has to change something within herself and that it's not just the school's fault or the sport's fault. If she moves to School 2 and it sucks for her too, that's a huge problem that she may be anticipating.