I don’t think that she would consider herself a racist.
When she was growing up, her father used to get all of the kids in the car and drive to the “city” to visit their grandparents. Part of the allure of the trip was stopping at the ice cream stand and sitting in the (locked) car eating ice cream while laughing at the “coloreds” who “probably couldn’t afford any ice cream”.
So it’s really not so surprising to me to find out that she has a figurine of a black man with a string that when pulled drops his pants and exposes his behind. She finds it funny. I find it possibly interesting within a certain context, but offensive since I am familiar with her beliefs (and fears) about people of color.