Both are correct, but you need more context to discern which is more appropriate. "She is panicking" is something that is going on right now, and without any surrounding context would appear that whoever is speaking is trying to get some attention of help as soon as possible. "She is panicked" comes off as more of a statement to make someone else aware of "her" state of mind/ state of being, but not necessarily is a rush to aid the person. Again, it depends on the context but both are technically correct. Good job!

"She is panicking." is correct. "She is panicked." is incorrect because it should be "She panicked." "She HAS panicked", which is sometimes contracted as "She's panicked", is oftentimes misinterpreted as "She IS panicked". To avoid confusion, you can read more about verb conjugations here: http://conjugator.reverso.net/conjugation-english-verb-panic.html Hope that helps. Happy learning! (^v^)