First, do you have to roll it over? If the investment options are good in the 457 are good, she should keep the money there. 457s are a lot more flexible for withdrawing than an IRA.
The reasons for rolling it over include the fees are too high, the investment options suck, or you won't need to access this money until age 59.5. You could do a roth pipeline for the IRA, but that takes a 5 year rolling waiting period.
Secondly, it seems the first choice most accurately describes your wife's situation.