Update from the hospital. Any thoughts on what to do?

Well after talking to the case manager a new one at the smaller hospital they put my grandma in there is a bit of a delilma in a way. They are diagnosing her with mild cognitive dementia and of course she can not live in her house let alone by herself if I chose to get a job and start my life. There is a chance that she might bounce back and the doctor may feel she doesn't need to be in a nursing home for so long and release her back into my care which will start again the snowball effect of her refusing to eat once again. Which brings me into a problem. If she's there and then all of a sudden she gets better they will of course let her go back home with me but how can she live with me if the doctor said I can no longer take care of her. So here is where I am. If they decide to release her I feel that I should see if there is any other living arrangements that can be made in example an assistant living place if that is the case that comes forward. Seeing how having a live in caregiver or nurse to cover me while I go to school and work is very expensive and I have nothing for myself either. It is a hard decision but I don't know what to really hope for. Either way there is the cons to it. Such as if she doesn't get better she will have to stay there until she passes away but if she lives here she may not listen to me again and would try to drive her car knowing she can't drive. That is also an issue. She can not drive anymore due to her knee injury that causes her to not even be able to walk at all. So its not only a memory issue its also a mobility issue. I guess I'm trying to figure out what route to go on if worse comes to worse or this and that. Knowing how she is she is in no condition to walk stairs and drive and even walk outside seeing how disfigured her knee looks now. If her mind is going as fast as they say even though she is sharp and she knows who I am and other people and can vaguely remember yesterday but remember the food she eats that is a good sign but its more of how as her friend told me she's inconsistent with her speech which I didn't notice it. But until then I would like know what would you do?