Provide her with some educational materials and if she still acts this way after reading them, then there will be no excuse for her behavior and then you can decide how much you want her to be or not to be a part of your life.
One thing I've always found extremely interesting is how most heterosexuals automatically think "SEX" when talking to or about members of the LGBT Community, yet it's not what we automatically think when talking to or about members of the heterosexual community!
And, they think we're the "Odd" ones!