That woman is not trans.
Should trans women be allowed to compete in women's sports?
No.
1) There is no such thing as "transwomen". It is just a term that was invented to refer to homosexual men that put on female clothes and imitate female behaviour. Some of them take this imitation process so far they cut off their genitalia in an attempt to create a (disgusting) fake vagina out of their peehole.
2) Men have about 30% more muscle mass and thus a massive advantage in any physical sport meaning females stand 0 hopeo of ever being able to compete with males. Thus they need a league of their own where they can compete with other females. Bringing in males (poorly) disguised as women to that league will only mean the males will use their advantage there to easily jump to the top and steal any price that would be meant for women.
So a hard no. The easy solution to this is to have:
1 league for actual, real women (using the made up term "biological women" would mean I'd think there is such a thing as transwomen which I do not think) and have a 2nd league where all men + women + homosexual men in female clothing can compete.