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If you want to adopt I recommend that you refuse guardianship. The main reason is that you will have to file for the termination of parental rights yourself and take on the lawyer and court fees associated with it. The state will not be involved at all. YOU will have to prove why it's necessary without any evidence from the CPS file...it's confidential. That will make it very difficult.
Also, if your child qualifies for a subsidy post adoption under CPS conservatorship, she will not be eligible for it if you take over that conservatorship before adoption. This may or may not concern you, but it's something to consider for long term health costs or education costs.
It sounds like the state is trying to pass on the expense of the TPR trial to your family so save the state some money. Don't let them get away with that! They removed to child for a reason and they need to see it through.