No sh_t.She’s not your granddaughter.
If she were she would have been taught since birth that words are merely words and no matter their definition or intent have absolutely ZERO actual effect over them. That only the weakest of minds can't grasp that concept.
I have an 8 year old who doesn't get so butt-hurt over something someone may say when referring to them. Then again, come to think of it, she also isn't a di m/l ib either, so...……….