It would be really helpful for her to explain more fully the conversation.  Is she saying that she was trying to describe the stories in the newspapers where this parent talked about racism and her/her child being called the n-word and that's when she used the word, or is she saying she couldn't remember the woman's name and she chose that pronoun to refer to her?  The former might be forgivable but the latter... uh, no. 

Given the problems in Georgina, she's probably used to using/hearing the word.  Let's face it, there are places not too far north of Toronto where black people are still referred to as 'darkies'.

On another note, she is 82 years old, its time for new blood on that board...maybe she can use her experience/ serve her community in a volunteer capacity if she cannot be a source of wisdom and leadership for said board.