Sorry Di, it may seem harsh in the circumstances, but the fault has to be your daughters.
What is worrying though, is that the other driver is now claiming she has whiplash, also she talked of loss earnings.
Did your daughter take out legal cover in her car insurance? If she did, then she needs to get in touch with the legal team as soon as possible. Not knowing the circumstances in this case but there are low life around who contrive to manufacture an 'accident' like the one you describe. I'm not saying that happened in this case but your daughter needs good advice. She should start by chatting to her insurance company making sure they have the full picture, ensuring they know the other driver stalled her car.