Generally when my pictures start coming out blurry it is not because of software. You may just have a dirty lense. Give her a wipe with your shirt or microfiber cloth and see if it helps.
As far as what is the best setting, I believe that lenses are set to take the best photos in 4:3? Someone correct me if I'm wrong, as I am in no way a photography person. Just what the Internets have told me before