The application isn’t a place for your daughter to show off her pride or heritage. Just check Latino, don’t put Asian and move on.
When you registered her for school for the first time, how did you answer the question?
That is the ethnicity that she has used all of her academic life. What has suddenly changed?
Don’t overthink it. What did your daughter put on her standardized testing? Does she identify, say, at school, as more hispanic, european, or asian?