How to properly fill W-7 for wife on H-4 visa?

I'm on H1-B visa. My wife has H-4 Visa. It's our second year living in the US. In the first year my wife didn't apply for ITIN and I used married filing separately option. Our accountant said it's the best option.

However this year I want to use Turbotax, obtain ITIN for my wife and file jointly. I know I'll need to mail W-7 with my tax return via regular mail.

The questions are:

What boxes shall she check in the first filed in W-7 form?

Does she pick "Dependent of resident", "Spouse of resident" or "Dependent/Spouse of non-resident"?

She is studying remotely/via internet in a regular university located in her home country. Do we need to check "f"?

What else do we need to check in the first field?

I've read "Instructions for Form W-7" but they're not helpful at all.

Thanks!