it doesn't really have much to do with the life in uk test, looks to me if she had not passed it, she should have applied for FLR not ILR !!!
yes she needs to pass the test, but if she hasn't why she applying for ILR !! it says in the notes and on the form, if you havn't passed the test you shouldnt be using this form .. !! , its not her fault its his fault for not reading the form, maybe she should take him to her english classes to !! ;O)