Michigan 13 year old girl parents need HELP

I have a similar problem with expulsion from school. My daughter was truly wrong when she took a large kitchen knife to school because she felt threatened by 1 to 3 girls. The 1 main girl is about 5'9 and on the thick side. The other two girls were, I think, better friends with girl number 1. They were trying to get my daughter to the library without parent supervision to discuss the falling out of the friendship. As an adult I see set up. My true beliefs are that they were either going to geek my daughter up into fighting girl 1 or geek girl 1 to fight my daughter, which I believe that they would have a ll jumped her. She has not been in trouble before and they not only want to expel her from the school but from the district and the whole State. The State does have a zero tolerance . I put her into therapy the same day, because of her taking such drastic measures. The therapist said that it was because she felt bullied and did not weigh her options by telling an adult. I really can not afford an attorney because of unemployment. She was not doing that great in school because she was behind what the schools were teaching, but she began trying to improve. I can not afford private schools, if even allowed to attend. The therapist who works out of a different school system told me that she felt they were trying to railroad her. I asked the principal to expel her from his school but not the district. He said that that is his ruling. At a lost as to what to do. I could pull her out of school but the next school would have to have it's own ruling. I have been so depressed, thank GOD I'm not working because I would have to take a leave because of the situation's affects on me. Her father is in rehab for a back problem and he can not walk. The therapist said that my daughter did not want to put any more pressure on me.
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[sunlover]

Have you taken this over the schools head> District or even School board?

I called the district because that is what the paper said to do, call within 5 days to contest the principals decision. He told me that it is a no tolerance law in effect. I looked it up and it is such a law.