I vote for taking the puppy. Yes, there might be more issues with her since she is coming from a BYB, but at least she will be in a home where she can get the love and care she deserves.
You can teach your daughter in this also. Taking this pup that may or may not be perfectly healthy is a way for you to keep her from being this woman's next breeder. You are keeping money out of her hands. She would sell the pup if she didn't give her to you.
I'm not even on the fence with this one. Good luck to you.