I think apply for a statement again. There is a formula to make applications more successful, just because it is knocked back doesn't mean that she can't actually get one.
Also, 'slow processing' and 'word finding problems' isn't necessarily simply dyslexia.
I work in secondary, and we have some kids who have come into Y7 on NC low level 2. To be honest, whilst they have increasing difficulty accessing the curriculum (obvioulsy it gets harder as the work gets harder), we have had great success with getting all of these students to not only read, but understand what they are saying and some of them have made more progress than expected (moving at least a sublevel, and in some cases a whole level in one year in English, Maths and Science). These students are statemented. For KS4 next year we are currently debating a curriculum that will personally suit the student, hopefully with a pass in E, M and S GCSEs, and some lifeskills courses as well.
These students are just the kind of student it sounds like your daughter is.
I'd put this down to lots of reading and questioning, 1:1 work with TAs, plus encouraging them in the classroom to answer questions etc. Also what has proved really successful is to work to their strengths - allowing them to show what they understand via a poster (for the artistic ones) or other formats (for ones with other strengths, drama etc). It is unfair to ask students to demonstrate what they know only in writing - that way you are simply testing their literacy, not necessarily what they know.
Research shows that one of the big things for children like your daughter is the social development and confidence, and we've seen this at work too, so I'd be disinclined to HE her for that reason.