hiddley of course other people have feelings too. But other people's feelings do not trump our own.
Rose's feelings are not more important that the OP's daughter's.
The OP's daughter doesn't want to be hit.
I totally agree that we don't let children dominate these things. I remember times when my son didn't want to invite suchandsuch because they hadn't played much this week and he'd taken it really personally. I also remember when my daughter didn't want to invite someone for an equally spurious reason. Of course I talked them round in those instances. We talked about what friends are and what friends are not and understanding that other people might see things differently and have different interests and priorities etc.
But I would never have insisted that they invited a child who hit them and, when it happened, didn't.
A lot of work is done with children in EY and KS1 about "what makes a good friend". Children are told that hitting/pushing/saying unkind things is not what a friend does - so I'm guessing the OP's daughter doesn't feel that Rose is much of a friend anyway at the moment.
And they are also taught that they don't need to be friends with someone who hits them. That they should tell a teacher and find someone else to play with who behaves like a friend.
I can tell you now that if you get a class of 4/5/6 year olds together and ask them what a friend does, responses will include:
Let's you play with them if you are lonely
Looks after you when you are sad
Is kind to you
Doesn't say mean things
Doesn't push or hit you
Are always top of the list.
Someone who isn't a good friend:
Says mean things.
Hits you.
Doesn't let you play with them.
Disclaimer: you're allowed to not play with someone who hits your or says mean things.