Wait.............remember you let go of her. Now is the time to back it up. Nobody can help her. This is how waywards act. Don't approach her parents. If they ask you about the sitch, tell them the truth, but do not go to them and make it your business to tell them before she does. They are her parents! You've let it go! You have no control over her.
Be honest with your kids, in an age appropriate manner. She will probably be furious if you tell them, so take this as a warning.
It is not about what you feel should work in your M. It is about doing the work that gets the right results. Do what works!