An internship seems like a great way to explore and network in a field you are interested in. Her interests include writing, journalism, psychology, health care - very unfocused at this time. You are correct that the City Year is about the education system and if she were to teach it would be HS/College. Younger kids and subjects are not her thing it would seem.
I see it like the oft used situation of joining the military to create a focus and discipline. It would give her a year to experience a different environment and area than she is used to and improve her resolve to persue a particular path.
She ran in a Christmas theme 5K - got costumed up!