If her account is disabled then she might be able to re-enable it via this page : http://appleid.apple.com, then 'reset your password'
She might then need to log out of het account on her iPod by tapping on your id in Settings > Store (Settings > iTunes & App Stores on iOS 6+) and then log back in so as to 'refresh' the account on it
If that doesn't fix it then she might need to contact iTunes Support (we are fellow users here on these forums) : http://www.apple.com/support/itunes/contact/ - click on Contact iTunes Store Support on the right-hand side of the page
For her security questions, if she has a rescue email address (which is not the same thing as an alternate email address) set up on het account then go to https://appleid.apple.com/ and click 'Manage your Apple ID' on the right-hand side of that page and log into her account. Then click on 'Password and Security' on the left-hand side of that page and on the right-hand side you should see an option to send security question reset info to her rescue email address.
If she doesn't have a rescue email address (she won't be able to add one until you can answer 2 of your questions) then she will need to contact iTunes Support / Apple to get the questions reset.
Contacting Apple about account security : http://support.apple.com/kb/HT5699
When they've been reset (and if she doesn't already have a rescue email address) she can then use the steps half-way down this page to add a rescue email address for potential future use : http://support.apple.com/kb/HT5312