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ANSWER: Unfortunately, because she entered the US illegally, she is not eligible for adjustment of status from within the US. She must leave the US in order to get a legal entry. That presents a bit of a problem for two reasons: 1) after a deportation, if someone re-enters the US illegally, she is subject to an inadmissibility ban, and 2) becaue she accrued more than 1 year of unlawful presence, she is subject to at least a 10 year ban for re-entering the US.
The only way to get around this is for her to marry a US citizen, then that citizen to file form I-130 and the alien to file form I-601A for a Provisional Waiver of Inadmissibility. If this provisional waiver is approved, she will leave the US and apply for the marriage based immigrant visa from abroad. The approved provisional waiver will be reviewed by the US consulate as part of the immigrant visa application. If the visa is approved and issued, she can then come back to the SU with the immigrant visa and will be issued her green card within three months.
As of now, this is the only way possible for this to work.
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