I hate bullying. I was the kind of kid who was really upset by others being mean for no reason...I would cry instead of stand up to the bully...I still remember going to the park in our neighborhood to find a friend, and an older girl said F**k You to me....I didn't even know what to do.

I didn't even know her, and I was so sad.
I would tell your daughter to loudly counter the bully, and bring the rule following classmates on board with her. If the bully starts again, maybe she could say something like:
"One of our class rules is "Be respectful". You are being disrespectful by calling me names. Please stop."
"I do not say mean things to you. Why do you want to hurt my feelings so much?"
She could ask the students around her "Isn't she breaking a class rule? (Whichever one applies) What is the consequence in school for breaking a rule?" (This may get the bully thinking that other students are on to her)
I find my students at this age are very much about the rules. They want to enforce them, and they can be quick to protect each other. If there is a student with a big mouth

or personality in her class who is kind to everyone, maybe your daughter can say to him or her "________ has been calling me names, and it is really hurting my feelings. Do you think you can help me get him/her to stop?" Chances are the loud kid will get the teacher's attention whenever it happens, and maybe the teacher will see the frequency and really work to put a stop to it.
In my classroom, bullying is the one thing that I will come down VERY hard on kids for. In a class this age, I would prob. tell the bully "You come to school to learn, and you are not allowed to make anyone else feel bad at school. Apologize right now. Sit here, by yourself, and you may only join the class again when I think you are ready to only say nice things to others." Or something like that...
For the second occurance, the student would have to write the broken rule (Treat others with respect, or whatever) 15 times, explain its' importance, and have his/her parent sign the paper.
The third time, it would be a parent phone call or conference. Luckily, I have not gotten there yet. Students function so well in a class where they all work to support each other- I hope your daughter's teacher comes down very hard on the bully. Maybe you can ask her the consequences for this type of behavior in her classroom?
Yes, kids can be mean...but they can also be respectful, understanding, compassionate, and supportive...and bullying does not need to exist.

to you and your daughter!