Racism is difficult to define, but the comments must have been bad enough to make you feel they simply were not right. I would do as Cofty says, get clear in my own mind what real Racism really is, explain that to my kid, and also explain that ways of talking about people are sometimes not acceptable, even if they don't come from a thoroughly 100% racist viewpoint.
I do not agree with the Poster who said your daughter has to respect points of view, or even use of language, which are simply wrong. People can have their opinions, and use the words they choose, but we do not have to respect anything that does not deserve such respect.
It isn't though, up to a 9 year old to challenge them outright, you may encourage her to simply say something like " That isn't a nice thing to say" , or to simply keep quiet, but be aware that the words are simply wrong.
Family ties are important, but as with any relationship, if they become toxic, it is time to limit contact. Don't overreact, but work hard to form your daughters own opinions along the right lines.