How to sync my Applie iPhone 14 with my daughter's Apple Watch SE (2nd gen)

Is it possible to sync my iPhone 14 with my daughter's Apple Watch SE (2nd gen)?

Using my iPhone:

• I have downloaded the Apple Watch app on my iPhone
• I have created an Apple ID for her
• On my phone- I clicked "Set Up for a Family Member)
• I've clicked continue through the following prompts: Family Setup, Data & Privacy, How Family Setup Works
• I've tried to pair the Apple Watch using the camera viewfinder. I've also tried pairing it manually- but I keep getting this error message: "Setting up for a Family Member requires a GPS + Cellular Apple Watch Series 4 or later that is running watchOS 7.0 or later"

I hope I don't need to purchase a new watch for her- please help me!! Thanks.