Hi, I'm in the UK, the short answer is yes she can pass her grade but it will depend on whether her club will enter her if she can't do the circle up.
How long does she have until the competition? Have you got a chin up bar for her to work her chin ups and leg lifts at home?
If she competes without having the upwards circle at all then she will lose 2 marks for non-attempt of the skill, plus the value of the move 0.5, plus execution deductions. If she makes an attempt and just doesn't quite make it then she would lose the value of the move 0.5 and execution deductions. Even if she is judged not to have made an attempt she can still pass her grade as long as her other pieces are tidy.