Luxating Patella is graded 1 - 4. Here is a link about LP that may be helpful. If your puppy has such a degree of LP, I am quite sure she should be seen by a board certified orthopedic surgeon.
Yorkie Haven Rescue - Patellar Luxation Info
Often pups with LP also have torn ligaments...here is another link about that:
Yorkie Haven Rescue - Cranial Cruciate Ligament Tear Info