My recollection is that after two years at the academy you owed time to the Navy....so you’d have to serve time as enlisted sailor. But if you were discharged dishonorably You’d have to actual pay back cash.
The process might have changed in the past 27 years, but that sounds like she was nominated by a congress person, not actually appointed (appointed is liked getting admitted to a college...nominated is getting qualified to actually apply for admission). I recall the physical test being part of the admissions process...I remember having two coches at my HS administering the tests and signing a document attesting to the results. I think I did 3 pullups. Not sure if I was able to ever do that many again, including during plebe summer.
I recall the nomination and appointment process because Bernie Sanders (he was the lone member of the House of Representatives from Vermont back then) nominated me for West Point and Annapolis, and Leahy nominted me just to Annapolis, and he was the one that actually appointed me.