<p>Is this your first choice college? True or not, I would just thank her and tell her how much you want to go to this school and that it’s exciting to know that it would be advantageous to you if she wrote the recommendation(just as she told you) I’m sure she wouldn’t have told you this if she thought you had no chance at all. As paying3tuitions said, it’s a compliment to you.
Good luck! The application process could be very stressful. Stay focused and try not to get senioritis!</p>