Hello and welcome to HCM
You have mentioned that blood sugar levels of your daughter was 127 mg^ (which I assume to a fastine sample).
In either case (fasting or radom) blood sugar level is definitely high. Presence os ketones in urine is another indication of diabetes mellitus
Since, your elder daughter suffers from Type 1 Diabetes
Mellitus, there is likelihood of similar problem in other family members as this is a genetic disease.
The next step to be taken is to get your daughter's blood sugar levels done (Fasting and post prandial).
The subsequent management will be based on the test reports.
Thanks and take care
Dr Shailja P Wahal