Gracie was a little terror as a puppy. She just loved playing rough and keeping my cats in line. If you can find the proper tone of voice that will impress her; picking her up and giving her a stern no so that she realizes you are not pleased with her performance will eventually get to her. Distract her from her terrier bout and try again.
With Gracie I had to use a rolled up newspaper. I never hit her though I was tempted a few times. But slamming that newspaper against my hand or a piece of furniture always got her attention and eventually she learned that she was in trouble when she heard that sound.
Once she learns that you are really in charge she will get in line. It takes time and patience though. The terrier personality can be very aggressive. They were originally bred to kill things and that still runs in the blood. Gracie still likes to attack and "kill" things but it is confined to her toys. She does like to play fight with me. I am supposed to hold the toy and shake it back and forth so she can have fun trying to catch it. What ever works for her.
