Answer
It is not possible for the woman to curl into a ball and start spinning.
Work Step by Step
Because there is no external torque acting on the person after she lets go of the rope, her angular momentum is conserved: $$ I_0\omega_0=I_f\omega_f$$
Before letting go, the woman was not rotating, so $\omega_0=0$. This means her initial angular momentum $L_0=0$. Because angular momentum is conserved, whatever she does, $L_f=I_f\omega_f=0$. Therefore, it is impossible for the woman to curl and spin, because the lack of angular momentum.
