It is really quite funny, but also a bit scary. It took me about 12 seconds to realize this was a scam, so I just sort of played along with her for a minute, but then I started to wonder about people that might actually fall for this. There HAS to be people that take the bait and give up a couple hundred bucks because they think they're going to get 9 grand. I feel bad for those people. It's like people that play the lottery every day. People can completely blind themselves to logic and common sense when they allow themselves to think they can get rich by doing essentially nothing.
To report the fraud, go here:
http://www.grants.gov/web/grants/support/general-support/grant-fraud.html
Their number is listed , along with an email address, at the top of the page.
Also here:
http://www.consumer.ftc.gov/articles/0113-government-grant-scams