She is not a hermaphrodite. Sounds like she is intersex. It is not the same thing. A hermaphrodite has fully functioning reproductive organs of both sexes, and it's beyond rare. I don't actually know if it's EVER been recorded in humans.
Seems like the external genitalia of this person is female, but they have internal testes which is what's producing the masculine appearance. She's been brought up female because, externally at birth, that's what she appeared to be. So she is female.
However, she should not be allowed to compete, because she has an edge over females from elevated testosterone levels which are being caused by internal testes.
Elevated levels of testosterone in females or estrogen in males isn't uncommon. It's usually because of cysts in females, and in males reduced levels of testosterone. Often estrogen in foods or water supply are to blame.
They dealt with this in such a disgusting way.