FLR (M) or Discretionary Leave to Remain Extension

[shahfaisalshahxad]

I'm new to this forum. I need an advise regarding an immigration matter for my wife. I explain my situation :::

We got 3 years discretionary leave to remain in May 2012.
I got my ilr in october 2014 on 10 years basis. After that I applied for my 3 children's naturalisation and they got British passport in February 2015. Now my wife's visa is expiring next week and she has been living in uk for 9 years. We are on benefits since we got discretionary leave. My wife is claiming child benefit and child tax credit and I am claiming working tax credit. We jointly are claiming housing and council tax benefits.
She is my dependent from the day 1 in uk till today. We got our dlr on echr article 8.

Now my questions are

1) what is the best option for me to do; apply flr m or extension of dlr

2) can i apply ilr for her now?

3) if flr m, then is there chance ukba refuse her visa because she is claiming benefits?

4) or what would be the safest way?

I will appreciate your feedback. Thank you.