
Well it depends if she was born with female genitalia or male genitalia; if she’s born with female genitalia and is in this case by chromosomal abnormalities such as swyer-syndrome in this case xy chromosomes with female genitalia then she can. Believe it or not plenty of female athletes have higher testosterone than their counterparts Brittney griener for example. But if she was born male and is transitioning then no.
Then yes she should have the ability to participate, just cause she has more testosterone doesn’t mean she’ll be better at any particular sport; sports are traditionally predicated on body physique. Some bodies better built for some sports. Gymnasts should not be tall, swimmers need long torso with shorts and huge wingspan to chop water efficiently. Volleyball needs tall hitters and blockers but defense specialists should be shorter than them.