I am glad the trip turned out okay. Sounds like you and your son had a great time and that is what matters.
As for the MIL, I wouldn't take that on. She may be indicating that she is willing to rent a room, but at the end of the day, you wouldn't feel comfortable doing this to your MIL. Also, do you really want her around 24/7 and having absolutely no privacy w/her there? Your h would be coming over using his mother as an excuse to come there all of the time. I know you'd like to help out, but you've got your own set of issues to deal with and you do not need to have her under foot and listening to all of her problems day in and day out. If I recall, she's the one that took it upon herself to have your son's hair cut a while back. Nope, she's got 3 kids that should be helping their mother out. Don't respond to the email, just let it sit. She can rent a furnished place either near her or near one of her kids. Don't take this load on...your shoulders are broad, but in time, her presence will drive you nuts.
Sit quietly, the answers will reveal themselves when you least expect them to. The past is gone, the present is a gift and you need to focus on today, allow the future to reveal itself when it is ready.