The long and short answer is yes. She has to distract from the information coming out about the pay to play at the State Dept. and the Clinton Foundation that is gaining traction.
I think that's part of it, but also, I think she's getting worried about Trump's outreach to black voters. He keeps telling them how the Democrats have played them for fools for decades, and she's scared to death that many in the black community are starting to see that he has a point. The KKK ploy is attempt to scare them into staying on the Democrat plantation.