Here's my disclaimer
: I'm NO expert, but just a couple of observations:
1.
"Every time she hears a noise she barks. When I pick her up to let her know everything is okay, she quits barking."... This may actually be reinforcing her behavior by 'rewarding' her with picking her up and soothing her. It might be best to ignore her, then reward her when she's quiet and calm.
2.
"She even acts like she's going to attack my 2 year old granddaughter, but she never bites."...Exactly how is she acting? Does she show her teeth as if vicious, or does she just bark and nip at her feet? She may just want to play and be overexcited and needs to be taught not to be too rough.
3. Is she alone a lot during the day? If so, her barking could be causing separation anxiety, which is causing her to be excessively sensitive and barking as a nervous response.
I really do wish you well and hope you find some solid answers from some experts here on YT...you've come to the right place