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Unless she is a high red and her mother is a low blue she will most likely not pass BA.
If she is what you want to breed for you can always turn off testing and breed her to a 3 B or A stud :)

She would probably be about as good as gen 3 Red mares.

If she failed BA, I think you’d need to do the full 5% boost and even then you still might not get her where you’d want her. I have never boosted anything but gen 2s though, so you should seek more experienced minds for that.

I’d be inclined to just treat her like any other gen 3 Red in your Herd. If you keep gen 3 Red, turn off her testing and bobs your uncle. I would keep an eye on her AFPT and if it’s not living up to other gen 3 Reds, I’d snip her or make her a show pony dam.

I personally want my foundation mares to have an AFPT of 10.0 and up, gen 2 to be 10.5 and up and gen 3 to be 11.0 and up. That’s after 3 foals and for every foal thereafter. But, all my pastures get the pasture bonus and I breed for a pretty aggressive increase in quality. Ammit has said a 0.4 point increase for each generation is a good target.

Remember if you’re doing AFPT that you need to record the PT of foals that you yum so you don’t skew a mare high by getting rid of her less talented foals.