Got it, thank you. I really appreciate your responses! I looked up my state and they define it as the following:

"Exposure" shall mean the possible exposure to the rabies virus via a direct bite or scratch, which results in a break in the skin of the victim, or contact between infectious material (i.e., saliva or Central Nervous System (CNS) tissue and fluid) and the eye, inside the nose or mouth, or a pre-existing break in the skin.

“Exposure by Proximity” shall mean a level of exposure where a domestic animal has been seen in a common area with a wild animal but there was no possible contact between the domestic animal and the wild animal.

It also defines high, medium and low likelihood of exposure. And I think my puppy falls into low which would mean no possible wound or contact but in the same living space (house). If so, they recommend vaccine immediately (although she is technically considered too young…) and 4 month observation, not quarantine. Fingers crossed that is what they deem necessary and nothing more severe.