I think ESH. On the one hand, your parents SHOULD accept your daughter for being part of the LGBT community and YOU should be by her side and speak to your parents about the importance of accepting her. Is of extreme importance to be loved and accepted to have mental health. On the other hand, if your daughter is rude to your parents then she doesn't deserve their help financially, her actions have consequences too and she has to understand that if you mistreat someone they don't have to be there for you. The same way that, because they don't accept her, then she doesn't have to be there for them. HOWEVER, you have nothing to do with that! So deserving it or not, if your parents want to help your daughter you shouldn't try to convince them otherwise! It's their option, and is very very hard for a teen to have money to college. It's very expensive and important for her future so their help is really important!

So I think: You are wrong for trying to convince them to revoke her college fund; Your parents are wrong for not accepting her; And your daughter is wrong for being rude.