Objectively assess her work, identify where she needs to improve and manage her. Her work performance includes her interactions with the team which should be professional and cordial. Throw out any and all personal feelings you have for this employee, they are irrelevant.
When it comes to managing a person you personally dislike, this is what Allison Green has to say:
First, stop seeing your relationships with colleagues in terms of who you like and who you don't like. Your job as a manager isn't to be friends with the people who work for you — in fact, it's to not be friends with them. (You need to preserve professional boundaries so that you can objectively assess their work, give feedback, make tough decisions about their tenure with the company if necessary, and generally be their boss, not their friend.)
That means that you need to focus on his work, not whether you enjoy hanging out with him.
However, if his behaviors are impacting his effectiveness, then as his manager, you're almost obligated to talk to him about that. And that might be a legitimate issue here, since it sounds like you're partly identifying a problem with how he's fitting in with your office's culture and expectations about behavior.
[problematic behaviors with impact on the team] These are the types of things that you should talk with him about, because these are legitimate areas for you to care about — they affect his own performance and they affect your team in general.
But again, you should be approaching this utterly dispassionately — it's not about whether you like him (irrelevant); it's about his impact in the workplace, good and bad.
Source: when you manage someone who you personally dislike, Alison Green, May 14 2012
Also I feel I should point out that you should never pawn a bad employee off to another team. As a manager your main role is building and maintaining a competent team. Putting it very crudely, any pieces that aren't up to spec should either be improved or removed. Passing bad employees off to other teams is dodging the responsibility you have to your team and your company and the opposite of managing.
As ColleenV points out I should clarify "bad employee". In the above paragraph I'm referring to employees with performance or attitude problems that are unlikely to improve. If an employee is simply out of his depth or struggling with particular aspects of his job, and there is an option to transfer him to a role that he would excel at (and that he would enjoy), then that is often a great solution. In that case you're simply transferring a good employee to a role that he would perform better at and based on anecdotal evidence this is almost always works out well for all parties involved.