As for AP's cost estimates, I assume they include replacement of the indoor unit too. It's 35-40 years old, it's an R22 system, and wouldn't be compatible with a new higher efficiency outdoor unit whether it be geo or air.
All of the geothermal systems I have seen had only an indoor unit. They are either integrated and have compressor, heat exchanger and air-handler in one box or they are split with the compressor/heat-exchanger in the basement and the air-handler in the attic.
If the in-ground piping is leaking, then her problem is not in the unit itself and rather than replacing it, the in-ground stuff should be fixed first.
Installing an Air-Air will require some wortk that the geothermal replacement doesn't require. For one, Freon piping needs to be run from the outdoor unit to the air-handler and an electrician needs to install the required circuit for the outdoor unit. That can be very easy or very complicated.