Spoofing caller ID on a PSTN call is not possible, even in theory, because the POTS protocol does not have provision for outbound transmission of caller ID. The outbound leg could instead be sent via a VoIP provider (that does allow spoofing), but the call would of course not be free. One possibility is Voxbeam ($0.0081 to $0.0152/min., depending on route choice and her carrier).
Alternatively, you could skip the OBi and call her via a "calling card" type of service. With Localphone, once set up, you dial a local number from your mobile and it rings directly to hers; $0.015/min. Another option is CallWithUs at $0.0095/min. (requires two-stage dialing, but you can probably automate that in your mobile.)
A third option is Rebtel. You call her (it works like Localphone), but if she immediately calls back the number shown, the Rebtel call is free, though it uses her airtime.
Forwarding an incoming PSTN call back out the same PSTN line is not possible with the OBi. (It could work with some devices, if the PSTN line has three-way calling or call transfer service.) Instead, she could use a VoIP provider to send PSTN calls to her mobile. If her PSTN line has caller ID service and she wants to show the caller's number on her mobile, Voxbeam would be suitable. Otherwise, a Betamax brand would be less expensive.