"She's not following our rules so I guess we should discipline her, eh"
Um...yes. Where's the question? Rules are meaningless if you don't enforce them. And even 1 year olds can be disciplined.
Many do not understand the difference between discipline (from disciple) and punishment.
"Spare the rod and spoil the child" isn't about hitting with a rod, it's about gently but firmly using the hooked end of a shephard's staff to return a wandering sheep to the fold, to keep the it from becoming lost.
Really? Please explain to me how you discipline a 1 year old baby?