Name calling!

My daughter is being called names by this not so nice girl at school.  When she told me what she is being called I lost it laughed so hard. But I realized it's probably bothering her to the point she cussed at her.  Now my daughter doesn't cuss so how can I handle this situation so it doesn't escalate to my daughter whopping this girl's butt?  She reminds me so much of me it scares me, I was in all kinds of fights at school always getting kicked out.  She doesn't know this but I was a horrible teen!  Since those teenage years my life has completely changed and no one would have ever guessed that from me!  My daughter is being called a penis- in returned she called a girl a Bitch.  Which I want her to stand up for herself but I'm so scared that she will get into trouble the way I did, I just told her to ignore the girl that she didn't know what else to call you or it's another word for being a dick.  Which I get because she been one here at home!