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Taken from the free online dictionary: The difference is that she's and similar shortened forms are used in colloquial speech, but not in certain cases. In short, she/they is the most common way for a person to indicate that they go by she/her or they/them pronouns, likely with a preference for the former.
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According to grammar rules, it should be this is she, because is is a linking verb (a verb that connects the subject to more information about the subject), so it can't have an object (her), but it's. In your example, she is being emphasised.
