Serious Situation with my Daughter & her Best Friend. Her BF says she's in LOVE with her! WHAT?

You don't have to move, but you do need to distance your daughter from her friend. This is NOT apporpiate behavior! And you do really need to have a talk with her mother. Explain to her you don't have a problem with her daughter or the way she feels. But you have a problem with the way that she is expressing it. And that this is what is really bothering your daughter.