I know that when our dogs go after a rabbit, there's no way I'll be able to call them off until they've either caught it or it gets away. They don't catch many rabbits, but when they do I've found a strong "give" command to be invaluable. They aren't often interested in eating the rabbit, but they do love parading around in front of the other dogs with the prize...which gives me time to get it away from them. So we work on "give" quite a lot. And often, they come right up to me with the rabbit to show me what a good job they did
It is traumatic, though, for the human watching
...and rabbits do have a pretty impressive, blood-curdling scream
However, it's a very doggy thing to do and it has no bearing on whether Lady is aggressive or how she behaves toward kids. If you've not had a problem to date, there's no reason to think that you will!