Since there are limited options in DC, is it worth considering a gap year (or 1.5 years due to her HS graduation date)? If she was a year older - say 17 - would it be okay for her to live at college?

I am just wondering since there are a lot more options if you expand the possibilities to schools within a three hour drive. That would include the Philadelphia area, which has many options. Then you have Baltimore between Philadelphia and DC, and there are some good schools in VA.

If money is a concern (and it is for most of us), then being old enough to go away to school would open up some merit aid options.

Also, I don't think AU meets full need (though they have gotten better about this in recent years). Also, you'll need to check with schools to see if they consider your DD an international or not. At the time of application, you will be living outside the US, but by the time she attends, you'll be in the US - you may need to discuss with the schools individually. Many schools do not meet full need for internationals, but will for those with parents living in the US.

About the SATs, please note that the format will change in Spring 2016. She should probably try the old format, and if she wants to, she can try the new format. Also, try the ACT. Schools in the US accept either one. Some schools also require SAT Subject Tests, so you'll need to check requirements for each school you are considering.