Hi,
You don't absolutely have to delete the daughter's account, but if she is a minor she does have to be transferred, or the account deleted, first before you can close your family group to join another.
Read this document about how to move a child to another group - Move a child to another group using Family Sharing - Apple Support - "You can't remove a child under 13 years old from your family group, but you can move them to another group or delete their account."
The alternative is to delete the child's account altogether which has the consequence that anything purchased with that account will not be available for redownloading or updating in the future. One way to delete the account would be to log into the unwanted "child" account and request deletion. You should have the ID and password from when you first set up the account, or can recover the password according to information provided in the referenced links below.
Create an Apple ID for your child - Create an Apple ID for your child - Apple Support
- "If you need to see the options you have for managing your child's account, you can sign in with their Apple ID and password at https://privacy.apple.com/account."
How to delete your Apple ID account - How to delete your Apple ID account - Apple Support
- Can I delete my child’s account?
"Your child can also request deletion of their Apple ID, which requires your approval."
You could also contact Apple about this request: Click here --> Choose your country or region - Official Apple Support Select your country, then a product and work your way down the menu to the desired issue. If you don't see one then try a different product until you reach a telephone or chat help request and ask to be redirected.