In college it would be a withdrawl/fail once you are past the drop period. If she is not planning on going to a top college or is not thinking of being an art major the grade really will not matter.
When I was in college, if you dropped after the add/drop period you got a W. If you dropped after the Withdrawal period you got a W/P (pass) or W/F (failing at the time of withdrawal). Those were semester courses and you had a long withdrawal time. This is a HS, full year elective class— I just don’t see how they can try to make her stay in it.