SOLUTION:

The daughter should pick envelope 1.

Unfortunately she picked envelope 3.

Statements 1 and 2 were false, and the only true statement was statement 3.
If the check was in envelope 1, that would make statement 1 false, statement 2 false and statement 3 is the only true statement.
If the check was in envelope 2, statements 1 and 2 would both be true. If the check was in envelope 3, statements 1 and 3 would both be true.

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